Paramount Global has reported sizable increases in streaming and theatrical revenue for the fourth quarter of 2022. However, declining revenue from traditional TV and content costs caused a 93% drop in the conglomerate’s overall operating income.
Paramount Global reported significant increases in streaming and theatrical revenue for the fourth quarter of 2022. Paramount+ added 9.9m subscribers to its flagship streaming service, which is now 56m. Paramount+ revenue increased 81% year-on–year, while overall streaming revenue increased 31% to $1.39bn.
But expenses at the direct to consumer division rose 25%, so the segment’s adjusted lost increased 15% to $575m.
Paramount’s filmed entertainment division saw revenue increase 35% year-over-year, to $936m, with box office hits including Top Gun: Maverick and Smile driving a 149% jump in theatrical revenue to $97m.
The Paramount Pictures releases account for five of the top 15 engagement drivers.
Paramount executives spoke to analysts during a conference call. They stated that the integration of Showtime’s premium cable network into Paramount+ will result in a write-down of $1.3bn to $1.5bn, but save $700m over the long-term. Paramount+’s top tier price will rise from $9.99 per month to $11.99 with the integration, they said.
Paramount Global CEO Bob Bakish stated that 2023 will be the year of the company’s “peak investments” in its flagship streamer.
Paramount Global CEO Bob Bakish stated that the company’s “peak investment” in its flagship streamer will be in 2023. This was more evident than in Paramount+’s fourth quarter growth, which saw a record 9.9M subscribers. It was driven by hit content such as Top Gun: Maverick and Criminal Minds: Evolution. Paramount Pictures also had six films open at the top of the US box office in 2022 and Paramount regained the position of the most-watched media group in linear television. We expect to see earnings growth in 2024 with our content and platform strategy.
