Paramount+ adds 5.6M subscribers in Q4
Paramount+ adds 5.6M subscribers in Q4
Paramount Global’s streaming services Paramount+ and Pluto TV had very strong showings in 2024.
As February dwindles and March nears, more of the biggest companies in media will begin reporting their quarterly earnings. That trend continued on Wednesday, when Paramount Global revealed its earnings report for the fourth quarter of 2024. As part of the report, Paramount informed analysts that its streaming service Paramount+ had grown to 77.5 million customers, a jump of 5.6 million over the 72 million subscribers it claimed at the end of the third quarter.
Paramount’s direct-to-consumer (DTC) operations — which include both Paramount+ and Pluto TV — grew by $204 million year-over-year and Paramount+’s average revenue per user (ARPU) was up 1% year-over-year. The numbers indicate that Paramount’s streaming services were one of the few bright spots for the company heading into what will be a crucial 2025.
Paramount+’s subscription revenue grew 7%, driven by subscriber growth, while the company’s DTC advertising revenue rose 9%. Both Paramount+ and Pluto saw heightened advertising income due to the political advertising throughout the year. Due to these improvements, Paramount’s DTC business saw revenue increase 13% in 2024, including an 8% jump in the fourth quarter. In total the company’s streamers brought in $7.6 billion in revenue on the year and $2 billion during the final three months of 2024.
The company’s flagship streamer Paramount+ saw its domestic watch time per user hit a record high as it increased 22% year-over-year, while global viewing hours increased 28% year-over-year for both Paramount+
and Pluto.
“We added 10 million new subscribers for the year to provide a very strong Q4 with 5.6 million new subscribers, the strongest quarter in sub growth in two years, and Q4 engagement soared,” one of Paramount’s three co-CEOs Chris McCarthy said. “Global watch time per user improved 20% driving a measurable improvement in churn of over 100 basis points year over year. As a result, revenues increased significantly, up 33% for the year.”
Compared to Paramount’s traditional TV wing, the streaming side of the business was markedly better. The company’s TV Media wing, which accounts for CBS and cable networks like CBS Sports Network, Paramount Network, MTV, and more, dropped 7% in terms of revenue for the year to $18.8 billion, including a fourth-quarter decline of 4%. CBS cites a smaller number of sporting events during the year — CBS aired the Super Bowl in February 2024 — as a reason for the dips. However, they were admittedly partially offset by political advertising. The continued decline of traditional TV viewing dramatically impacted carriage fees for the division as well.
What were Paramount’s biggest stories of the quarter?
It was a busy quarter for Paramount, especially for the company’s legal team. Paramount Global is in the process of merging with Skydance Media, a transaction that has drawn plenty of litigious attention from stockholders. Paramount now faces lawsuits from public employee funds in New York and Rhode Island among other legal action brought to try to stop the merger, though whether any of these efforts will be ultimately successful remains to be seen.
It appeared that Paramount-owned channels like CBS, MTV, and Paramount Network were likely to disappear from YouTube TV in February, though the two sides were able to work out a short-term arrangement which led to a long-term deal soon after. The dispute originated over Paramount asking for carriage fee increases that YouTube TV deemed too onerous.
Content-wise, the biggest news for Paramount+ during the quarter was the news that “Yellowstone” characters would be returning to the streamer in a new series. A spin-off of the hit neo-Western drama featuring Beth Dutton and Rip Wheeler is in development for Paramount+, and will likely be ready to debut sometime in the next year or two. That will allow Paramount+ to expand its already formidable collection of titles from the pen of Sheridan.
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. Get free access with a Walmart+ subscription.
Paramount+ includes “1883,” “Tulsa King,” “Star Trek: Discovery,” “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa League, 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.