Paramount gets streaming boost as theatrical revenue dives

Paramount Global has reported a second consecutive quarter of profitability for its direct-to-consumer (DTC) division, with the Paramount+ streaming service adding 3.5m subscribers to reach a global total of 72m. 

The DTC performance was offset, however, by a 71% in theatrical revenue for the third quarter of 2024, “reflecting the number and timing of releases,” said the company. 

As it moves towards its merger with Skydance Media, which is set to close in the first half of 2025, Paramount reported third quarter revenue of $6.73bn, down 6% on the third quarter of 2023. Operating income was down 46% to $337m and adjusted OIBDA dropped 20% to $858m. 

The company’s DTC segment, which also includes the Pluto AVoD service, saw revenues rise 10% to $1.86bn and had adjusted OIBDA of $49m, compared to a $238m loss for the third quarter of 2023. 

In the company’s filmed entertainment segment revenue was down 34% to $590m, in spite of good performances from A Quiet Place: Day One, which grossed $261m worldwide, and Transformers One, which managed $127m. Adjusted OIBDA for the segment was $3m, compared to a $49m loss the prior year. 

The company’s TV media segment produced revenue of $4.3bn, up 6%, and adjusted OIBDA of $936m, down 19%. 

On an earnings call with analysts, Paramount Global co-CEO Chris McCarthy was noncommittal about the possibility of the company seeking a partnership in the international streaming business. A partnership or joint venture has been mooted as the company looks to cut costs in preparation for its fresh incarnation with Skydance. 

“We feel good about our position and our ability to remain a standalone,” McCarthy said. “That being said, you can absolutely count on us to be opportunistic. We’re looking at partnerships from a strategic lens to drive more value.” 

“But as it stands today we have real momentum,” McCarthy added, “driven by our strategy, our execution and our hit content.”