Paramount Global PARA PARAA expects Paramount+ subscriber growth to slow in the first quarter of 2025 as the impact of major content releases and the Super Bowl fades.
What Happened: On Wednesday, during the company's fourth-quarter earnings call, Paramount reported strong momentum for its streaming platform, adding 5.6 million subscribers in the fourth quarter, marking its best quarter in two years.
The surge was largely driven by high-profile content such as Landman, Tulsa King, and Lioness, along with a major viewership boost from the Super Bowl.
"We expect continued subscriber growth at Paramount+, though not at the same level as Q4 given the timing of content releases," added Naveen Chopra, Paramount's CFO.
The Super Bowl provided a massive one-time boost, but Paramount+ will need its hit series lineup and international expansion to maintain momentum.
The company still expects profitability for its domestic streaming business in 2025, but the first quarter will serve as a critical test of whether Paramount+ can hold its ground without a major live event to drive signups.
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Why It's Important: Paramount Global missed Wall Street’s fourth-quarter revenue estimates on Wednesday. A decline in its cable TV unit overshadowed strong subscriber growth for Paramount+.
The company posted $7.98 billion in revenue, falling short of the expected $8.07 billion.
During the earnings call, Paramount Global co-CEO George Cheeks confirmed that the company remains on track to finalize the Skydance merger in the first half of the year.
The Paramount-Skydance deal still requires approval from FCC Chairman Brendan Carr. He has launched a news distortion inquiry into the 60 Minutes segment, with results expected no sooner than late March.
Price Action: At the time of writing, Paramount’s Class A shares dipped 0.85% in after-hours trading to $22.25, while Class B shares declined 2.24% to $10.97. During Wednesday's regular session, Class A closed 1.54% lower at $22.44, and Class B fell 2.43% to $11.22, per Benzinga Pro data.
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