Paramount Global’s Q4 earnings are here, and while streaming is gaining ground, the company is still stuck in a financial balancing act. The good news? Paramount+ keeps growing, with 5.6 million new subscribers pushing the total to 77.5 million. The bad news? Traditional TV, still Paramount’s biggest moneymaker, is crumbling and taking profits down with it.
Linear TV: Still Paramount’s Sugar Daddy (For Now)
Despite the company’s aggressive push into streaming, 65% of Paramount’s 2024 revenue still came from its aging broadcast and cable networks—CBS, Nickelodeon, MTV, Comedy Central, and the rest of the linear TV relics. Love it or hate it, cable is still paying the bills, even as the revenue stream dries up:
- Affiliate fees and distribution revenue dropped 5% to $7.65 billion.
- Advertising revenue fell to $8.18 billion for the year.
- TV licensing revenue took the hardest hit, plunging 23% to $3 billion.
Total TV revenue clocked in at $18.8 billion, but with double-digit drops in key areas, it’s clear that sugar daddy status won’t last forever. Meanwhile, total company revenue for 2024 slipped 1% to $29.2 billion as streaming growth struggles to fully offset linear’s decline.
Streaming’s Growing, But Still Bleeding Cash
DTC revenue—which primarily includes Paramount+ and Pluto TV—rose to $7.6 billion in 2024, with subscription revenue climbing 12% and ad sales up 18%. (BET+ wasn’t explicitly mentioned in the earnings report, though it’s typically included in this category.)
For Q4 specifically:
- Ad revenue from streaming climbed 8% to $574 million.
- Subscription revenue increased 9% to $1.44 billion.
But here’s the kicker: Despite all that growth, the streaming segment still lost $286 million in Q4, bringing Paramount’s total net loss to $224 million for the quarter. That’s an improvement from last year’s $490 million streaming loss, but it’s still far from profitability.
Movies to the Rescue?
So badly, I wanted to say “Paw Patrol to the rescue” here. I digress.
If there was a bright spot outside of streaming, it was Paramount’s film division. Theatrical revenue surged 67% to $1.08 billion, thanks to box office juggernauts Gladiator 2 and Sonic the Hedgehog 3.
- Sonic 3 is approaching $500 million globally, making it the franchise’s biggest hit.
- Gladiator 2 crossed $462 million worldwide.
Even with those wins, overall operating income dropped to $129 million, down from $404 million a year ago. In other words, movies can only carry so much weight when the rest of the business is in flux.
Wall Street Shrugs, Skydance Looms
Investors weren’t impressed. Shares dipped around 2.4% in after-hours trading, signaling skepticism about Paramount’s streaming-first transformation. Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins continue to sell the idea that Paramount+ will reach domestic profitability in 2025.
But with cable TV bleeding revenue and the company still deep in the red, it’s a race against time. Linear TV is still Paramount’s sugar daddy—but how much longer?
And let’s not forget: A potential Skydance merger is hanging over everything. As Paramount scrambles to secure its streaming future, the bigger question remains—will it survive long enough to get there, or will Skydance be the one left holding the bag?
