Paramount+ reached 60 million subscribers in the first quarter of 2023

Paramount+ reached 60 million total subscribers with the addition of 4.1 million subscribers in the first quarter, Paramount Global revealed in its latest earnings report. However, the company missed first-quarter revenue estimates since the current figure is far from that achieved in the previous period, when the service added 9.9 million.

According to the group, Paramount+’s global subscriber growth was driven by a strong content slate including top originals like “1923” or “Tulsa King,” and the returns of “Mayor of Kingstown” and “Star Trek: Picard,” as well as hit film franchises “Top Gun: Maverick” and “Teen Wolf: The Movie,” and also the NFL Playoffs. Moreover, according to Antenna, Paramount+ is the number one premium streaming service in the United States regarding sign-ups in the quarter and since launch in March 2021.

The company's other streaming service, Pluto TV, hit 80 million monthly active users during the period, becoming the number one Free Ad-Supported Streaming Television (FAST) service globally, as it has increased total global viewing hours 35% year-over-year. Total global viewing hours across Paramount+ and Pluto TV increased over 50% year-over-year and over 20% sequentially.

Regarding financials, total direct-to-consumer (DTC) revenue grew 39% year-over-year to an annual run rate of more than US$6 billion. Subscription revenue grew 50% year-over-year to US$1.11 billion, principally reflecting subscriber growth on Paramount+, including the benefit from previous launches in international markets. Furthermore, advertising revenue rose 15% year-over-year driven by strong engagement on Paramount+. Adjusted OIBDA decreased US$55 million year-over-year, reflecting higher costs to support growth of Paramount+, the company said.

“Paramount continues to demonstrate the strength of its content engine, driving momentum across streaming, television and theatrical. This resulted in Paramount+ and Pluto TV reaching significant milestones with 60 million subscribers and 80 million MAUs, respectively, while CBS is poised to claim the number one spot in broadcast for the 15th straight season. Looking ahead, we are focused on continuing to drive market-leading streaming growth while navigating a dynamic macroeconomic environment. In addition, the updated dividend policy we have announced today will further enhance our ability to deliver long-term value for our shareholders as we move toward streaming profitability,”  commented Bob Bakish, President & CEO at Paramount Global.

●  CORPORATE DEMAND SHARE

According to Parrot Analytics, Paramount Global continues to face the same fundamental issues as its fellow legacy media conglomerates: how to balance declining but still profitable linear businesses with scaling a flagship streaming service that is deep in the red.

In terms of demand for and value of its content, Paramount Global in in third place when it comes to corporate demand share in the United States, with 12.5%. While Paramount+ continues to rise in both streaming original and on-platform demand share, the service has not fully leveraged Paramount Global’s valuable library into a top tier general entertainment streaming service in terms of demand and subscribers, Parrot noted.