paramount has just announced its quarterly results and the results in the streaming section have been catastrophic, since the company has announced losses worth 511 million dollars only during the first three months of 2023. That has led to a dividend cut that has been fatally received by Wall Street, where they are tired of companies burning money on streaming. which has caused an instant fall of 26% in the value of the shares.
losing money non-stop
Those 511 million represent an increase compared to the 456 million they lost during the first quarter of 2022, but an improvement over the 575 million they lost in the last quarter of last year. Of course, no matter how you look at it, the company It does not stop losing large amounts of money for wanting to compete directly with Netflix.
Nevertheless, all the data are not negative, as Paramount+ has added 4.1 million new subscribers, reaching a global figure of 60 million. In addition, Pluto TV, the company’s free streaming service, grew to 80 million active users during this quarter, but the bad news is that advertising revenue fell…
The problem in the end is a question of costs, since the income generated by Paramount + grew 50% compared to the year, reaching 1,100 million dollars, but it has proven to be insufficient. It is evident that this is what has led to an increase in the cost of the subscription in the United Statesgoing from $9.99 per month to $11.99, while the ad-supported rate goes from $4.99 to $5.99.
Besides, Showtime’s future integration into Paramount+ It is another movement to save, estimating an annual cost reduction of 700 million dollars. However, for it to occur we will have to wait until the third quarter of the year and for now it has generated additional expenses. Of course, what seems increasingly clear is that there is no room for so many alternatives to Netflix and that the future seems doomed to closures, acquisitions by other companies or agreements such as Universal and Paramount that served to shape SkyShowtime. If even Disney is losing indecent amounts of money with their platform…
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