Paramount Global lost nearly three million global paying subscribers at its streaming service Paramount Plus during the second financial quarter (Q2) of the year, the company affirmed on Thursday.
The loss of 2.8 million subscribers to Paramount Plus was largely due to the winding down of a “hard bundle agreement” in South Korea, where its service was available to customers of TVING.
Overall revenue from Paramount’s streaming products came in at $1.88 billion during the quarter, a 13 percent increase from one year ago. It was the only segment of Paramount’s business to post a financial gain during the period.
TV media revenue came in at $4.217 billion during Q2, or 17 percent lower than Q2 2023, while filmed entertainment brought in $679 million, down 18 percent on a year-over basis.
Total revenue from Paramount’s businesses clocked in at $6.813 billion for the quarter, down 11 percent from 2023.
On a conference call with investors, Paramount’s three co-CEOs affirmed plans by the company to lay off as much a 15 percent of its workforce over the next few weeks. The pink slips will affect around 2,000 employees at Paramount’s domestic and international operations. The executives say Paramount stands to save between $300 million and $400 million by eliminating those positions.
Paramount will also take a near-$6 billion write-down on its linear cable networks, which continue to see lower revenue amid an ongoing soft advertising market and lower distribution fees from cable and satellite companies. The devaluation is tied to Paramount’s anticipated merger with Skydance Media, which was formalized last month.
Revenue from linear network advertising came in at $1.733 billion during Q2, or 11 percent lower on a year-over basis. Distribution fees collected from cable and satellite companies for the privilege of carrying Paramount-owned broadcast and cable channels came in at $1.908 billion in Q2, or 5 percent lower compared to 2023. Paramount said the winding down of its Showtime Boxing business, which sold bouts through pay-per-view, was a big reason for the company seeing lower income from cable and satellite partners, which could have been greater had the company not raised fees on distributors.
Paramount’s streaming business helped partially offset its woes in traditional broadcasting and cable, with advertising from direct-to-consumer services like Paramount Plus and Pluto TV earning $513 million during Q2, an increase of 16 percent. Subscription fees charged to customers of Paramount Plus with Showtime and Paramount Plus Essentials came in at $1.367 billion, up 12 percent on a year-over basis. Paramount said price adjustments that saw most subscribers paying $1 to $2 more for access to Paramount Plus helped boost subscription revenue.
