Paramount+ clears 60 million subscribers, but streaming losses are growing

Paramount is growing its streaming subscriber base, but profits are still taking a while to catch up.

In the company’s most recent quarter, its streaming division, which includes subscription service Paramount+ and free streamer Pluto TV, reported a $511 million loss, a 12% year-over-year increase. Overall, the company’s direct-to-consumer streaming business reported quarterly revenue of $1.5 billion, a 39% increase year over year.

• Paramount+ had 60 million subscribers at the end of March, 4.1 million more than it did at the end of 2022, the company reported in its earnings call Thursday.
• Revenues for the service increased 65% year over year, due to both increased subscriber growth and, to a lesser extent, an increase in ad revenue. 
• Pluto TV, meanwhile, ended the quarter with 80 million monthly active users, execs said.

But to “further enhance our ability to deliver long-term value for our shareholders as we move towards streaming profitability,” the company cut its dividend by nearly 80%, Paramount CEO Bob Bakish told investors.

Same old story: Paramount’s mounting losses are a familiar tale in the streaming world. Operating a streaming service is expensive, and streamers like Peacock have also reported widening losses as they invest in programming that will attract subscribers and advertisers.

On strike: As the Hollywood writers’ strike entered its third day, Bakish acknowledged that the work stoppage “may cause some disruption.” With that said, Paramount has “content in the can” to release throughout the work stoppage in the short term, he told investors; further out, the company may lean more heavily on additional unscripted and sports programming, as well as international productions, to help boost its content slate.

As for the financial impact of the strike, Bakish told investors to expect a slight dilution on revenue for now. “It really ultimately depends on [the] duration of strike,” he cautioned.