Paramount+ Adds 4.5 Million Subscribers to Hit 67.5M; Streaming Losses Reportedly Peaked in 2022
It’s a new year for Paramount Global, but the company has not been able to leave its troubles in 2023 as it would undoubtedly have liked. The company faces myriad struggles in 2024, and they were all put into focus with the release of Paramount’s fourth quarter 2023 earnings report.
Within the report, Paramount revealed that it had gained 4.5 million streaming subscribers on Paramount+ between the start of October and the end of December, leading to a current total of 67.5 million. At the end of Q3 2023, Paramount+ had 63 million paid subscribers. This represents a 7.14% increase in subscribers over the previous quarter and a 20.75% jump year-over-year.
Paramount declined to provide details on the total users of its free ad-supported streaming service Pluto TV but noted that its two primary streamers increased their combined global viewing hours by 27% during the quarter.
The company’s subscription revenue reportedly grew 43%, led by Paramount+ during the quarter. Paramount reported that despite initially anticipating that its streaming segment would hit its peak losses in 2023, it actually apparently did so in 2022. Paramount told investors that it now expects to hit Paramount+ profitability next year, after delivering “significant total company earnings growth in 2024.”
The fourth quarter of 2023 still saw a $490 million dollar loss, but that was down from $575M during the previous three months. The company reports that Paramount+’s global average revenue per user (ARPU) increased by 31% year-over-year. The combined impact of the ARPU and subscriber jumps led to a 69% increase in the flagship streamer’s revenue in Q4.
“Our disciplined execution and strong content offering drove our results in 2023, as we continue to
evolve our business for profitable growth in 2024 and beyond,” Paramount CEO Bob Bakish said in the earnings release. “In Q4, Paramount+ revenue increased 69%, DTC Adjusted OIBDA improved for the third consecutive quarter, and we now expect to reach domestic Paramount+ profitability in 2025 – a significant milestone. Looking ahead, we continue to be focused on maximizing the return on our content investments and scaling streaming, while transforming the cost base of our business. And I couldn’t be more thrilled with the early momentum we’ve had across every platform in 2024, demonstrating the power of our strategy and assets.”
How Does Paramount+ Stack Up to the Competition?
Paramount+ is still on the lower end of streaming customer bases industry-wide. Netflix is the leader of the pack with more than 260 million subscribers worldwide, and Disney’s streamers Disney+, Hulu and ESPN+ combine to total of 224.5 million global customers.
Warner Bros. Discovery now has 97.7 million global streaming subscribers between Max and discovery+, keeping it ahead of Paramount. However, Paramount+ still has more customers than Peacock, which last announced it had 30 million paid subscribers. Apple TV+ and Prime Video keep their subscriber statistics private.
What Were Paramount’s Biggest Stories from Q4?
The most important discussions surrounding Paramount in the fourth quarter were related merger and acquisition talks surrounding the company. Control of a majority of voting shares in Paramount is available at the right price; Warner Bros. Discovery was the first company to engage in acquisition talks with Paramount, though this week it was reported that WBD is officially no longer pursuing such talks. Skydance Media and Byron Allen of Allen Media Group are still evaluating Paramount as a potential merger target.
As part of its efforts to streamline its business, and potentially make itself more attractive to prospective buyers, Paramount has reportedly decided to shut down its kids streaming service Noggin. The entire staff of Noggin has been laid off, and the streamer will be sunset in the coming months.
Paramount+ hosted a Super Bowl for the first time in four years in 2024, and while Paramount Global declined to reveal specific numbers for how many customers streamed it using the service, it did inform the public that the game was the most-streamed Super Bowl in history. Altogether, 123.4 million viewers watched Super Bowl LVIII across CBS, Paramount+ and other platforms.
As streamers look to potentially bundle themselves with competitors to enhance their value in the eyes of consumers, Paramount+ is rumored to be leading the charge. Reports emerged in December that Paramount had held discussions with Apple about bundling its streamer with Apple TV+, and more recently talks between Comcast and Paramount about a possible combination of Paramount+ and Peacock have come to light.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr. and more. The lineup includes “1883,” “Tulsa King,” “Star Trek: Discovery,” Nickelodeon’s “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.