Paramount says it will move ahead with a cost reduction plan that will reduce costs by $500 million while taking its streaming service into profitability.
Around 2,000 jobs will go, primarily from within its US workforce.
The company behind Paramount Pictures, CBS, MTV and the UK broadcaster Channel 5 has been reevaluating its business units ahead of its acquisition by Skydance Media.
The continued decline in broadcast television has forced it to write down the value of its cable networks by $6 billion, which in turn led to a second-quarter loss of $5.3bn
It’s direct-to-consumer streaming business led by Paramount+ reported its first quarterly profit.
Paramount+ subscribers decreased 2.8 million in the quarter to 68 million, principally due to a withdrawal from a hard bundle agreement in South Korea. Overall Paramount+ ARPU increased 26% year-over-year.
“We are proud of our results, including significant earnings growth largely driven by our DTC segment. In fact, for the fourth year in a row, Paramount+ is leading the industry in domestic sign-ups driven by our big broad hit TV series and blockbuster films. DTC profit growth for the past four quarters has totalled nearly $900 million and we are on track to reach domestic profitability for Paramount+ in 2025,” said Paramount co-CEOs, George Cheeks, Chris McCarthy and Brian Robbins, said in a joint statement. “We are confident that our Plan will drive long-term value by leveraging our broad hit content as we continue to transform Paramount for the future.”
