“Paramount has seen sequential improvement in year-over-year advertising in Q2. And in the upfront we just wrapped, Paramount saw positive low-to-mid singles on volume,” Bakish said during the company’s earnings call.
Chopra also pointed to DTC advertising growth improving due to subscriber gains and engagement across Paramount+ and Pluto, as well as improvements in direct programmatic buying activity.
“Looking ahead, we expect to see continued acceleration in DTC advertising growth in Q3, and we’re also bullish about the long term,” Chopra said.
The strike marches on
Like most other media companies, Paramount has been forced to adjust its upcoming CBS fall slate due to the ongoing strikes.
Because of the delays and stoppages of production, Chopra estimates that free cash flow in the second half of the year will be “significantly higher” than previously expected. Recently, Warner Bros. Discovery CFO Gunnar Wiedenfels also said that the company had saved $100 million in the quarter due to the Hollywood strikes.
Bakish opened Paramount’s call by saying the company hopes for a “timely resolution” of the strikes but added that the company is well-positioned to weather the stoppages.
“We’re saddened that, as an industry, we couldn’t come to an agreement that would have prevented this,” Bakish said. “So we remain hopeful for a timely resolution, and we are committed to finding a path forward.”
Pointing to the adjusted CBS fall slate, Bakish emphasized the strength of the sports offerings, including the addition of the Big 10, as well as Paramount+ content like SEAL Team arriving on CBS.
“The slate illustrates the strength of our global multiplatform asset base and strategy, and it’s one of the ways we’re staying nimble,” Bakish said. “Given our international production capabilities, we have more than 85 International scripted and unscripted Paramount+ originals already produced, in production or greenlit, as well as more than 20 local versions of global unscripted formats slated to debut through 2024.”
