• by Wayne Friedman , February 27, 2025

Paramount Global revenues were up 5% to $7.9 billion with operating income dipping nearly 70% to $129 million -- in line with analysts' estimates. After-market trading of Paramount’s stock was down 2%.

Net loss of its direct-to-consumer (D2C) businesses -- including Paramount+ and Pluto TV -- narrowed to $286 million (from $490 million in the year-ago quarter).

Paramount+ added 5.6 million subscribers in the quarter, and posted revenue 16% higher. Total D2C businesses -- including Pluto TV -- were up 8% to $2.0 billion.

Paramount+ now has 77.5 million global subscribers. In the fourth quarter, the streamer touted three of the top-ten original streaming series with “Landman,” “Tulsa King” and “Lioness.” The company reported global streaming hours were up 28% in total for Paramount+ and Pluto TV.

Laurent Yoon, media analyst of Bernstein Research, says there is a “net positive” for Paramount+ domestic business when it comes to viewership/watch time engagement -- growing 20% with subscriber churn declining.

Things continue to deteriorate for linear TV platforms -- down 4% in the quarter to $4.9 billion revenue and off 7% for the year at $18.8 billion. 

And there is more troubling news ahead. On the back of a 7% decline in linear media affiliate/subscription revenue to $1.87 billion, Paramount executives said during a call with analysts that the first quarter of 2025 could be worse, with an accelerated decline for the entire year.

Advertising revenues at linear TV networks dipped 4% in the fourth quarter to $2.2 billion. For the year, linear TV ad revenues were flat at $8.2 billion. Linear TV advertising remains four times as large as advertising on Paramount streaming businesses.

Advertising for both Paramount+ and Pluto TV ( its free ad-supported streaming service) grew 9% to $574 million (and 18% to $2.1 billion) -- largely coming from politics in the last three months of 2024.

Taking out political advertising at all Paramount Global businesses, media analyst at Madison & Wall Brian Wieser estimates core advertising would have dropped by 6% in the quarter.

In comparison to other major, legacy TV-network based companies' advertising revenue, Paramount scored mixed results at best. While Disney and Fox were up (excluding political ads), 3% and 11% respectively. NBC and AMC Networks were down 5% and 12%, respectively.

Filmed Entertainment revenue increased 67% to $1.08 billion, coming from strong theatrical results for "Gladiator II” and “Sonic the Hedgehog 3.”

Paramount expects the completion of its acquisition by Skydance to occur in the first half of 2025.