Paramount+ losses narrow as US studio unveils two new ‘Yellowstone’ franchises

1883

Paramount Global narrowed losses from its streaming business to $238m in the latest quarter assisted by steady subscriber growth and cost reductions, while the US studio also unveiled a pair of new spin-offs from its Yellowstone franchise.

The Bob Bakish-led company said subscribers of its Paramount+ service ticked up by 2.7 million in Q3 (July-September), taking the global count to 63 million, with average revenue per user up 16%.

Paramount+ remains well behind streaming frontrunner Netflix, which has 247 million subs globally, and US studio competitors such as Disney+, which lost more than 10 million subscribers in the last quarter taking its total to 146 million.

But the Tulsa King and Top Gun studio said its direct to consumer business now expects to lose less from streaming in 2023 than it did in 2022, with a Q3 revenue surge of 38% contratsing a fall in costs, helped by moves such as shifting Showtime into the Paramount+ ecosystem.

Tulsa King

Subs revenue was up 46% to $1.3bn and while its DTC unit lost almost $240m in Q3, that amount is down considerably on Q2’s $424m and the $511m loss in Q1.

Viewing time has also increased on streaming to the tune of 46% across both Paramount+ and Pluto TV, Paramount said, although its linear business continues to struggle with a soft advertising market.

Revenue from cable and broadcast networks including CBS were down 14%, following a 10% decline in Q2.

Paramount also highlighted the impact of the production hiatus caused by Writers Guild of America and SAG-AFTRA strikes, with a $60m loss in Q3 and numerous delays in show production.

Yellowstone expands again

Paramount said it would now launch the final installment of Yellowstone on its Paramount Network in November 2024 – a year later than initially planned.

The show is not available on Paramount+ in the US as it was previously picked up by NBCUniversal’s Peacock.

Paramount+ will, however, be carrying the new spin-offs titled 1944 (working title) and 2024 (working title).

The shows will join others from the franchise including 1883 and 1923, with MTV Entertainment Studios and 101 Studios continuing to produce.

Chris McCarthy, president & CEO at Showtime & MTV Entertainment Studios, said the new shows would “take audiences on a thrilling, new and unexpected journey with the complex and compelling storytelling that has become a hallmark of the franchise…”

Across the business, Paramount reported Q3 revenue up 3%. Shares surged by around 15% in after hours trading on the back of the news.