Paramount Global (until a few months ago called ViacomCBS) confirmed this Tuesday, May 3, what was expected: strong increase in subscribers for its streaming service.
This is an increase of just over six million adherents, as announced by the firm in its income and earnings report.
However, Paramount did not meet expected billing estimates, affected by low TV advertising saleswhere the fact of not having the NFL Super Bowl broadcast this year was impacted.
Once the news was known, Paramount shares fell more than 4.5 percent in the Wall Street premarket.
Paramount: More subscribers, less ad sales
According to the detail of the financial report, total sales fell one percent to US$7.33 billion in the company’s first fiscal quarter, less than the expected US$7.38 billion.
Regarding its biggest revenue generator, the TV media business, Paramount said that sales fell 6.1 percent from the same quarter in 2021.
Although he clarified that they are comparing with a year in which they had the rights to broadcast the Super Bowl
The 2022 Super Bowl was broadcast on NBCowned by the rival Comcast.
Shares also fell as many investors worried about the future of streaming services.
the strength of Netflixfor example, it is no longer what it was: in the first quarter of 2021 it lost 200 thousand subscribers and expects to lose another 1,500,000 in the second.
Beyond this, Paramount’s investments in live sports and programming on its Paramount+ platform have helped it exceed account addition expectations.
Paramount+ added 6.8 million subscribers in the first quarter thanks to titles like “Scream” and “The Lost City”.
Paramount replaced ViacomCBS
In February 2022, after a presentation to investors, ViacomCBS informed everyone that the name of the holding company was changing to Paramount.
The news was announced in parallel with the global broadcast strategy and the plan to expand the Paramount Plus streaming service and other businesses around the world.
In the United States, the impact was greater due to the disappearance of the CBS brand, a fundamental name in radio broadcasting in that country.
Columbia Broadcasting System began in 1927 with the first radio broadcasts.
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