As the writers and actors strikes continue to disrupt the entertainment industry, Paramount added a modest 700,000 subscribers to its main streaming service, Paramount+, the company announced during an earnings call this evening.
The gain is far smaller than the 4.1 million subscribers it added last quarter; however, along with the additions, the company’s subscription revenue rose 47%, and Paramount hit 61 million subscribers total.
For the quarter, streaming losses fell to $424 million—down from $511 million in the first quarter. And overall, the company said revenue for its streaming operations (which includes AVOD service Pluto) is up 40%.
Regarding the falling subscription adds, CFO Naveen Chopra said the decline is due to “seasonal softness” as well as a “strategic shift” in content release strategy to “better align with the launch of Paramount+ and Showtime.”
In June, Paramount officially debuted Paramount+ with Showtime, which the company expects to generate $700 million in expense savings. The tier launch came with price increases in both the existing premium Paramount+ tier and its essential tier.
Subscriber growth is expected to be higher in the second half of the year, but the third quarter will see a dip of just over a million subscribers due to a restructuring of a Latin America bundle deal.
Ad sales are up
Following Paramount closing its upfront talks, CEO Bob Bakish said revenue gains came from improvements in digital advertising on Paramount+ and Pluto, though linear TV sales still struggled with a soft market.
