Paramount Global announced financial results for the second quarter ended June 30, 2023, as the company continues to progress on the path to streaming scale and profitability. In Q2, strong revenue growth was driven by subscriber growth in its direct-to-consumer segment and improvements in engagement and monetization.
According to the report, the DTC segment remains on track to drive significant earnings improvement in 2024. In the second quarter of the year, Paramount+ revenue grew 47%, and the platform’s subscribers reached approximately 61 million, with 0.7 million additions in the quarter.
Also during the period, revenue increased 40% year-over-year, while subscription revenue grew 47% to over US$1.2 billion, driven by subscriber growth on Paramount+. Advertising revenue rose 21%, driven by higher impressions for Paramount+ and Pluto TV. Viewing hours for these two services increased 35% year-over-year.
At the same time, the TV Media segment delivered a substantial Adjusted OIBDA of US$1.2 billion. CBS Claimed the number one spot in broadcast for the 15th straight season. At the same time, the network produced eight of the top 10 most watched series, including the top four.
“In Q2, we maintained our focus on scaling our streaming platforms, maximizing our traditional business, and building a sustainable business model that will return the company to significant earnings growth in 2024. Notably, Paramount+ revenue grew 47%, total DTC ad revenue increased 21%, and global viewing hours on Paramount+ and Pluto TV were up 35% year-over-year,” said Bob Bakish, President and CEO of Paramount Global.
“And despite the environment, TV Media continued to contribute significant earnings. As we look forward, we will continue to be guided by our content-first approach and seek to maximize its value across platforms and revenue streams, while also operating with the utmost efficiency through this year of peak streaming investment,” Bakish added.
● CONTENT DEMAND
Paramount Global saw increases in demand for Paramount+ content in the second quarter of 2023, but the company must get creative with all of its entertainment assets in order to stand out during the dual WGA and SAG-AFTRA strikes, Parrot Analytics said in its latest report.
Flagship streamer Paramount+ continues to build momentum in key metrics of audience demand. For the second quarter of 2023, Parrot Analytics data reveals that Paramount+ US Total Catalog Demand Share was 11.2% (record high), Paramount+ US Originals Demand Share was 6.0% (T-record high), and Paramount+ Global Originals Demand Share was 5.0% (record high). While this growth is good news, Paramount+ has a ways to go before getting into the top three streamer conversation alongside Netflix, Disney, and Warner Bros. Discovery.
As the Hollywood strikes continue, broadcast and linear networks will be among the first to see the effects of a lack of new scripted series, Parrot noted. Paramount Global is setting up CBS for success in the short term with its recent programming decisions.