Paramount Global, a conglomerate that includes, among other things, Paramount Studios, celebrates major theatrical success and growth of Paramount + this quarter, but is expected to lose $ 1.8 billion in 2022. presentation. financial statement of the company presented this Thursday (4/8) to the market.
Until mid-year, the conglomerate has already lost $ 901 million and, apparently, the loss values will remain constant until December, mainly due to high investments in streaming productions. But despite the estimated loss being high, the conglomerate presented its performance optimistically, considering that it is necessary to invest to grow, especially in this phase of introduction of streaming. And it will knowingly increase expenses / losses in 2023 to face the competition.
The impetus for this is that Paramount is having one of its best years ever in theaters, most notably with “Top Gun: Maverick,” which surpassed $ 1 billion at the box office.
“Nowhere is our popularity more evident than at the box office,” CEO Bob Bakish told the market. “‘Top Gun: Maverick’ is the biggest movie of 2022 and our fifth # 1 title this year. In fact, ‘Top Gun: Maverick’ just grossed $ 1.3 billion at the worldwide box office and became one of the top 10 national shows of all time. “
In addition to “Top Gun”, the studio topped the box office with “Sonic 2: The Movie”, “Scream 5”, “Jackass Forever” and “The Lost City”.
Bakish also praised exclusive releases of its streaming platform, such as “Halo” and “Star Trek: Strange New Worlds”, which are responsible for pushing Paramount + to attract more users than any other service in the quarter. “Viewers hungry for extraordinary stories show up in ever-increasing numbers,” she said. “The diversity and quality of our content is unmatched.”
In fact, the original content worked to power the Paramount + service, which surpassed the 43 million user mark. While that’s not enough to clash with giants like Netflix, Prime Video, or Disney +, it’s already a significant sign. All the more so when you take into account that while Netflix is losing users, Paramount + has gained 3.7 million new subscribers in the last three months alone.
The executive listed the platform’s results. “Paramount + is the # 1 premium service in the US for subscriptions and net additions, both this quarter and full year. And based on other third-party data, Paramount + is also the most popular premium streaming service in the states. United between switchers [aqueles que trocam de plataformas]. This means that people who have abandoned a service in the past 12 months are more likely to add Paramount + than any other service, further proof that we are gaining market share. “
But to keep this audience growing, the only formula is to spend more. The bet is defended by Naveen Chopra, CFO of Paramount Global, who reaffirmed an investment goal of 6 billion dollars in production in 2023.
“When it comes to spending on content, the most important thing to remember is that when we think about our investment in content, we are always looking at the growth and return it unlocks. Our investment in content is working. We don’t want to sacrifice an opportunity. for the long term, “he explained.
For now, this will seem like a loss, but the expectation is that it will turn into a profit in a few years. “We just have to let it go a bit and manage some economic headwinds,” Chopra said.
To stop the leaks a bit, medium-term plans include placing the ads in a cheaper version of the streaming service, which giants Netflix and Disney + are also preparing to do. The CFO assured Wall Street that the advertising market can generate steady advertising growth along with subscriber revenue.
When asked about the possibility of a price increase for Paramount +, Chopra indicated that, in the future, these increases will come from offering new packages, meaning the current standard of Paramount + is expected to go premium when the announcements begin.
Bakish said that investing in more content strengthens the company: “Our content constantly attracts and entertains the mass audience. When I speak of our audience, I am not just referring to individuals, families or the whole country, but the world. whole. And not just in streaming, but in theaters and on TV. We are successful because we leverage all of our powerful platforms. “
Source: Terra
Emily Jhon is a product and service reviewer at Gossipify, known for her honest evaluations and thorough analysis. With a background in marketing and consumer research, she offers valuable insights to readers. She has been writing for Gossipify for several years and has a degree in Marketing and Consumer Research from the University of Oxford.
