Advertising slump hits revenues but streaming rises, while executives stay silent on Warner Bros Discovery talks

Paramount saw Q4 revenues from streaming rise 10% but TV losses widened, as executives remained silent on the company’s ongoing pursuit of Warner Bros Discovery (WBD) during its earnings call.

David Ellison’s studio received a boost this week when WBD said the latest all-cash offer of $31 per share and sweeteners for the entirety of WBD could lead to a superior proposal to that of Netflix.

David Ellison Paramount

Ellison wrote in his letter to shareholders that Paramount sees the WBD acquisition as “an accelerant” to achieving its goals, but there was no further detail on the call aside from confirming that talks with the WBD board are ongoing.

WBD continues to recommend Netflix’s all-cash $27.75 offer for the Warner Bros streaming and studios business to its shareholders, who will vote on the matter on 20 March.

Netflix co-chief exec Ted Sarandos is reportedly preparing for another charm offensive with regulators and White House officials in Washington DC on Thursday. Netflix did not comment.

Paramount reported mediocre fourth quarter earnings, with a highlight being the 10% year-on-year increase in streaming revenues to $2.2bn and a 17% rise to $1.8bn at Paramount+, where subscribers increased by 4% to 78.9m.

Total revenues climbed marginally to $8.1bn, slightly missing Wall Street expectations, and there was a $339m operating loss.

Executives forecast Q1 revenues of between $7.15bn-$7.35bn, below the Wall Street consensus estimate of $7.39bn, and $30bn in total revenue in 2026 on a projected 4% rise. The studio pointed to shows such as The Madison, Yellowstone spin-off Marshals, The Agency and Star Trek: Strange New Worlds as key titles.

The filmed entertainment division saw revenue rise by 16% to $1.3bn, which executives attributed to the consolidation with Skydance Media licensing and other revenue. Revenue was partially offset by unfavourable comparisons to Q4 2024 when the slate featured Gladiator 2, Sonic The Hedgehog 3, and Smile 2.

The TV segment declined by 5% to $4.7bn and Paramount reported a 10% drop in advertising revenue and a 7% decline in distribution revenue.

Paramount shares dropped 2.2% by the close of trading to $10.16. The company’s stock has fallen by 30% since its initial hostile bid for WBD on 8 December.

A version of this story first appeared on Broadcast International sister site, Screen

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