Streaming growth was this year’s major trend in Q3 earnings, and Paramount was no exception.
Co-CEO Chris McCarthy recently described Paramount’s DTC business’s success as “reinforcing our position as the number four global streaming service” on a Friday morning call with investors.
At a strong 18% year-over-year growth rate, DTC revenue reached $1.8 billion, of which $507 million came from advertising, which was $77 million more than it was at this time last year.
At $1.6 billion, advertising income fell 2% year over year. Advertising, licensing, affiliates, and subscriptions all contribute to TV media revenue, which fell 6% year over year to $4.3 billion.
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Approximately 38% of Paramount’s TV media revenue and slightly more than a quarter (27%) of its DTC revenue came from advertising this past quarter.
Additionally, Paramount’s total revenue for the third quarter was $6.7 billion, a 6% drop from the same period last year.
Give Pluto credit for the profits.
Paramount’s DTC division turned a profit during the second quarter of 2025, and the streaming service Paramount+ is expected to become profitable domestically by 2025, though it might take an additional 12 to 18 months to become profitable internationally, according to CFO Naveen Chopra.
Fast channel Pluto, on the other hand, has already turned a profit and reached its largest viewership to date, with 5.6 billion hours.
In the meantime, Paramount+ increased its revenue by 25% year over year and attracted 3.5 million new customers (though no precise figures were provided).
McCarthy attributed Paramount+’s increase to the return of both types of football with the NFL and UEFA Europa League, popular television shows like “Mayor of Kingstown” and “Tulsa King,” and theatrical VOD releases like “A Quiet Place: Day One.”
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While mentioning recent collaborations with Delta Airlines’ in-flight entertainment and Walmart’s membership benefits package, Walmart +, he expressed confidence in Paramount’s ability to “remain as a standalone” streaming provider going forward without relying too heavily on bundles or app integration deals.
Later, Chopra added, “We’ve talked for a while [about] the importance of having a diverse subscriber base that spans multiple channels.” “We are extremely effective at gaining and retaining subscribers, and that is clearly having a positive impact on our bottom line.”
The consequences from Nielsen
Although TV has performed somewhat worse, Paramount claims that this is due to “declines in the linear advertising market” rather than the company’s performance, according to the earnings report.
Higher political advertising and “the recognition of revenue underreported by an international sales partner in prior periods” also helped to offset the loss.
The UK’s Sky Media, which recently said it will have to reimburse partners including Paramount and Warner Bros. Discovery after miscalculating what it owed them, is most likely the overseas sales partner in issue, even though neither the call nor the story named them.
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However, Nielsen was another partner who did receive special attention. Investors are wondering what will happen because Paramount’s contract with the TV measuring business ended at the end of September and hasn’t been extended.
The conflict hasn’t yet had a negative effect on ad sales, and co-CEO George Cheeks says the company doesn’t anticipate any more significant effects in Q4, even though the two businesses are still negotiating a friendly settlement.
“Affordability is not really the issue here. “It’s about getting the value we need for what we pay,” he continued, adding that the Nielsen price for some networks should ideally not exceed the money such networks make from advertising.
While all is going on, the executives at Paramount are anticipating Q4, which usually brings in the highest amount of advertising revenue for the entire year, not including the benefit of delayed political advertising this time.
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