Paramount+ hits 46 million global subscribers in Q3, but stock drops about 9% on lost revenue • TechCrunch
Paramount announced its third-quarter results this morning, citing growth in global streaming subscribers.
The company’s flagship streaming service, Paramount+, saw a slight increase of 2.7 million subscribers in the third quarter, bringing the total to 46 million, from 43.3 million in the second quarter when Paramount+ recorded a net increase of 3.7 million subscribers. The streamer would have added 4.6 million subscribers had SkyShowtime not replaced Paramount+ in the Nordics.
Paramount’s ad-supported free streaming service Pluto TV gained 2.4 monthly active users to reach a total of 72 million. The company reported that Pluto TV grew total viewing hours worldwide by “strong double digits year-over-year.”
Across Paramount’s direct-to-consumer services – Paramount+, Pluto TV, Showtime, Noggin and BET+ – the company reached nearly 67 million subscribers worldwide, a huge jump from 63.7 million of the last trimester.
Despite subscriber growth, Paramount shares were down nearly 9% before market on Wednesday, Nov. 2, as the company’s overall third-quarter revenue of $6.92 billion beat Wall’s expectations. Street of $7.03 billion.
Paramount’s streaming unit posted third-quarter revenue growth of 38% year-over-year to $1.23 billion, as subscription revenue soared 59% from a year-over-year to $863 million. Ad revenue jumped 4% to $363 million and Paramount+ revenue was up 95% year-over-year.
Adjusted operating income before depreciation and amortization (OIBDA) showed a loss of $343 million, compared with a loss of $198 million. This was due to “investments in content, marketing and international expansion,” the company wrote in its letter to shareholders. The company announced in June that it plans to release 150 international original titles by 2025.
This year, Paramount+ has entered into several partnerships to seek more streaming subscribers as it tries to compete with streaming giants like Netflix, Disney+ and HBO Max. For example, Disney+ had an incredible third quarter, adding 14 million subscribers to reach a total of 152.1 million subscribers. Netflix saw its first increase in some time, bringing the total to 223.09 subscribers.
Paramount+ has partnered with Walmart to give Walmart+ members access to a Paramount+ subscription. This will likely give the streamer a boost in the subs, as Walmart+ has a subscriber base of 16 billion.
The streaming service has also joined The Roku Channel as a premium subscription.
Paramount+ was one of 30 streaming services to be added to YouTube’s new ‘Primetime Channels’ feature yesterday.