Paramount Global Q4 Sees Sharp Downturn in Movies and 15% TV Ad Decline, as Streaming Losses Narrow

Rexa Vella

Paramount Global Q4 Sees Sharp Downturn in Movies and 15% TV Ad Decline, as Streaming Losses Narrow

Paramount Global said it narrowed losses in its streaming business in its fourth quarter while grappling with declines in revenue in its larger TV and movie operations, echoing a dynamic followed by media rivals including Warner Bros. Discovery and Disney.

The New York owner of the CBS broadcast network, the Paramount+ streaming hub and the Nickelodeon cable channel said it saw a 6% decline in overall revenue during the period as the effects of last year’s Hollywood strikes weighed on its film and TV operations, which grappled with declines in advertising sales, content licensing fees and affiliate revenues.

In remarks, Paramount Global CEO Bob Bakish emphasized the company’s efforts to move its streaming business into profitability, noting an expectation that Paramount+ would be profitable in the U.S. by the end of 2025. “Looking ahead, we continue to be focused on maximizing the return on our content investments and scaling streaming, while transforming the cost base of our business. And I couldn’t be more thrilled with the early momentum we’ve had across every platform in 2024, demonstrating the power of our strategy and assets,” he said in a statement.

Paramount narrowed cash-flow losses in its direct-to-consumer business by $85 million in the quarter, cutting shortfalls to $490 million from $575 million in the year-earlier period.

But even as advertising and subscriptions rose at Paramount+ and other broadband venues, revenues fell at the company’s traditional businesses. Paramount’s TV networks saw advertising fall 15%, while affiliate fees dipped 1% and licensing was off 25%. The company noted that it is still working its way through declines in cable subscribers and “continued softness in the global advertising market.” Film revenues, meanwhile, were off 31%, due in part to a 19% decline in revenue from current releases and a 32% tumble in revenue from content licensing and digital home viewing.

More to come….

SOURCE

Leave a Comment