Paramount+ Reaches 60 Million Subscribers

But it lost 511 million dollars and cut its dividends.

Growth in streaming subscribers does not mean a gain in terms of money. Paramount+ reached 60 million subscribers worldwide in the first quarter of 2023, an increase of 4.1 million from nearly 56 million as of the end of 2022. Paramount’s advertising-supported streamer Pluto TV grew its monthly active users (MAUs) to 80 million as of March 31 from 78.5 million as of the end of the fourth quarter. Still, the Hollywood conglomerate posted a swing to a first-quarter loss amid a vaster streaming loss and a TV advertising revenue drop of 11%, as the latest results missed Wall Street expectations.

The company cited “higher costs to support the growth of Paramount+” as the key driver for the loss.

“We will focus on driving market-leading streaming growth while navigating this dynamic macroeconomic environment. And know that our decisions will position us well for a path of streaming profitability, significant earnings growth, and a return to positive cash flow,” Paramount’s CEO Bob Bakish told analysts. “Yes, this takes investment,” he conceded as Wall Street concerns rise over the studio getting to streaming profitability as TV ad revenues slump and costs rise while Paramount+ combines with Showtime. “2023 would be a peak investment year for streaming. There is no question that our investment is producing results. And as we scale, we are on a related path to streaming profitability,” Bakish said.

Source: The Hollywood Reporter