As Skydance continues its march towards finalizing its acquisition of Paramount, increased attention is bearing down on the studio’s financial performance. Despite showing signs of progress from its streaming division, Paramount’s overall earnings were below expectations, highlighting the need to make fundamental changes.
On the bright side, Paramount’s Paramount+ and Pluto TV streaming businesses narrowed their quarterly loss to $286 million, a 42% improvement from Q4 2023, and an annual loss of $497 million, a 70% improvement over 2023. Streaming revenue increased In Q4 by 8% to $2.01 billion.
The company is predicting that its streaming businesses will be profitable for the full year 2025, a milestone in the company’s history. While the majority of its streaming revenues will come from subscription fees, a considerable contribution will also be made from advertising.
Unfortunately, improved results from streaming were more than offset by a sharp decline in Paramount’s cable TV and movie studio groups. Q4 advertising revenue from cable TV fell by 4% as a result of the loss of subscribers and fewer advertising spots showing on its cable networks. Since Paramount’s cable division is the largest single revenue contributor in the company, a setback in this area had an oversized impact on total company results.
Revenue from Paramount’s movie studio increased when compared with Q4 2023, with good returns from high-profile new movie releases including GLADIATOR II and SONIC THE HEDGEHOG 3. However, an increase in marketing expenditures offset the boost in revenue. In the end, Paramount’s studio business reported a net loss of $42 million for the quarter, compared to a slight profit in last year’s Q4.
