Paramount+ Gains Subscribers Amid Financial Challenges

Paramount Global reported a fourth-quarter loss of $224 million, driven by restructuring costs and a decline in traditional TV revenues, despite a 5% increase in overall revenue to $7.98 billion. Paramount+ added 5.6 million new subscribers, achieving a 16% revenue increase, though the direct-to-consumer segment posted an adjusted OIBDA loss of $286 million. Filmed entertainment revenues surged by 67% to $1.08 billion, thanks to successful theatrical releases like 'Gladiator II' and 'Sonic the Hedgehog 3'. The decline in cable TV and linear advertising revenues remained a challenge, impacting overall profitability. Analysts had expected better performance, with revenue falling short of the $8.1 billion forecast. Paramount is planning a merger with Skydance Media, expected to close in the first half of 2025, as part of its strategy to pivot towards streaming and new content production.