After massively integrating Showtime into Paramount+ two weeks ago, Paramount reported quarterly results this morning, showing that Paramount+ added 9.9 million subscribers in the fourth quarter, up from 46 million in the previous quarter to a total of 5,600. Announced that it has 10,000 subscribers. This means Paramount+ has more customers than Hulu, which recently reported 48 million subscribers. The company also confirmed that it will raise the overall price of the service when paired with Showtime.
But Paramount+ barely missed the expectations of analysts who predicted a net addition of 10 million subscribers. Across Paramount+, Showtime, BET+, and Noggin, the company has grown with his 10.8 million direct-to-consumer (DTC) subscribers, bringing him to 77 million total customers.
Paramount announced on its earnings call that it will no longer report total DTC subscribers beginning in the first quarter of 2023.
Paramount’s free, ad-supported streaming service, Pluto TV, has increased its monthly active users globally to a new 78.5 million. On the other hand, his rival Tubi has only 64 million monthly active users.
The most important news for streamers this quarter was the announcement that Showtime will be integrated into the platform later this year. “Paramount+ with Showtime” will compete directly with Warner Bros. Discovery’s upcoming HBO Max/Discovery+ service.
During the earnings call, the company announced that it would increase the price of the Paramount+ premium tier from $9.99 per month to $11.99 per month to reflect the new Showtime content. The Essential tier, which does not include Showtime, will change from $4.99 to $5.99 per month. Pricing for existing and new customers will change when Paramount+ with Showtime launches in early Q3 2023.
Customers expected price increases after CEO Bob Bakish confirmed the plans in December.
As a result of the consolidation, the company warned investors that it expects total subscribers to decline in the first quarter of 2023. That’s because the Showtime subscriber base includes both subscribers using the Paramount+ and Showtime bundles launched last summer, or subscribers to both streaming services separately. .
The company also revealed that streaming losses widened again to $575 million from $502 million in Q4 2021. Meanwhile, direct-to-consumer revenue increased 30% year-over-year, and subscription revenue increased 48% year-over-year. Year. Paramount+ revenue is 81% YoY.
“Our content and platform strategy is working, and with even better content coming this year, we expect the company to return to profitable growth in 2024,” Bakish said in a statement to shareholders. I am writing in a letter.
The company said growth in Paramount+ subscribers was largely driven by new titles such as “Top Gun: Maverick,” which launched on Paramount+ on December 22, NFL games, and “Tulsa King,” starring Sylvester Stallone. Brought to you by the content slate, he added. Horror movie “Smile”.
