Paramount, now operating as part of Skydance, reported its first quarterly earnings since the recent corporate transition, highlighting a 17% year-over-year increase in direct-to-consumer (DTC) streaming revenue to $2.17 billion for the third quarter.

During the earnings call, CEO David Ellison stated that the company expects its DTC streaming business to achieve full-year profitability in 2025, with further profit growth anticipated in 2026. This aligns with previous forecasts made earlier in the year. The company considers its streaming operations, which include Paramount+, BET+, and Pluto TV, as its primary focus for future growth.

Paramount+ ended September with 79.1 million subscribers, an increase of 1.4 million during the quarter. However, the company acknowledges the need to expand further to compete with larger platforms in the industry. Total revenue for Paramount Skydance in Q3 was $6.7 billion, with net losses of $257 million.

To support its streaming ambitions, Paramount plans to invest over $1.5 billion in additional programming by 2026. This includes spending on original content, sports such as the UFC, third-party licensing, and an expanded film lineup. The company also announced plans to raise prices for its U.S. subscription video-on-demand (SVOD) services in early 2025.

On the technology front, Ellison discussed plans to unify the technology platforms for the company’s three streaming services next year. Paramount is also integrating Oracle Fusion, a cloud-based enterprise software, to improve operational oversight.

Paramount’s traditional TV networks continue to face challenges, with revenue from this segment down 12% in Q3 to $3.8 billion. Jeff Shell, president of Paramount Skydance, emphasized the ongoing value of the CBS Television Network, which averages over 5 million prime-time viewers and provides significant reach, especially with live NFL broadcasts. However, cable channels like Nickelodeon, MTV, and Comedy Central have seen steeper declines. The company plans to focus on digital strategies for these brands rather than spinning them off.

Advertising revenue also fell 12% year-over-year to $1.465 billion. In October, Paramount appointed Jay Askinasi as chief revenue officer to help drive future growth.

Since Ellison took over in August, Paramount has secured several major deals, including a $7.7 billion exclusive U.S. rights agreement for the UFC, the acquisition of the Duffer Brothers from Netflix, a successful revival of South Park, and the $150 million purchase of The Free Press. The company has also experienced challenges, such as the departure of producer Taylor Sheridan and workforce reductions following the sale of TV stations in Chile and Argentina. Ellison noted that cost savings from the merger are now expected to reach $3 billion, up from the previous estimate of $2 billion.

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