Paramount Global reported an increase in its third-quarter earnings, all thanks to the shrinking losses on the Paramount+ streaming business.
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Paramount+ Subscribers Grow More
According to the report, subscribers of Paramount+ are now more than 63 million, with 2.7 million net additions in the quarter. Revenue from the subscribers rose by 46 percent, while the ad sales expanded by 18 percent.
As a result, the Q3 profit for the owner of CBS, MTV, and other channels increased to 30 cents per share, excluding some items. This exceeded the forecast of the analysts of only 10 cents per share.
Although 63 million subscribers remain small to compete with streaming giants like Netflix and Disney+, the company firmly believes that Paramount+ will still grow in the following years. "We continue to execute our strategy and prioritize prudent investment in streaming while maximizing the earnings of our traditional business," Paramount Global CEO Bob Bakish stated.
Paramount Global Struggles With Declining Traditional Viewership
Like other channels, Paramount also feels the declining demand for traditional television viewing. With the launch of Paramount+ in 2021, the company is still bearing the costly expansion to streaming.
Bloomberg reported that the Q3 revenue of $7.13 billion failed to meet the $7.15 billion estimate of Wall Street. This can be attributed to the 7.7 percent decline in the revenue of the company's traditional TV networks.
Meanwhile, advertising was also down by 14 percent although capable operator fees remained the same. Lastly, the company's film studio, Paramount Pictures also experienced a loss of $49 million despite the release of "Mission: Impossible" and "Teenage Mutant Ninja Turtles" franchises.
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