Five big questions re: Paramount+ streaming:
1) How much revenue is Paramount generating from direct-to-consumer?
2) How many subscribers do they have?
3) What share of ad-supported streaming subscribers does Paramount+ account for?
4) What share of total TV time do Paramount+ and Pluto TV account for?
5) How much does Paramount spend on content?

Big question #1: How much revenue is Paramount generating from direct-to-consumer?

Paramount’s streaming revenue (YoY growth):
1) 2022-Q3 – $1.3B
2) 2023-Q3 – $1.7B (↑ 38%)

Paramount streaming profit (YoY growth):
1) 2022-Q3 – –$343M
2) 2023-Q3 – -$238M (↑ 31%)

Paramount’s streaming revenue (% of total):
1) Subscription – $1.3B (74%)
2) Advertising – $430M (25%)
3) Other – $4M (1%)
4) Total – $1.7B

Paramount streaming ad revenue (YoY growth):
1) 2022-Q3 – $363M
2) 2023-Q3 – $430M (↑ 18%)

Paramount streaming subscription revenue (YoY growth):
1) 2022-Q3 – $863M
2) 2023-Q3 – $1.3B (↑ 46%)

Why this matters: Revenue from subscriptions is growing 2.5X faster than advertising.

Big question #2: How many subscribers do they have?

Paramount+ subscribers (YoY growth):
1) 2021-Q3 – 26M
2) 2022-Q3 – 46M (↑ 80%)
3) 2023-Q3 – 63M (↑ 38%)

Wow: The NFL is a major driver of new signups for Paramount+.

Big question #3: What share of ad-supported streaming subscribers does Paramount+ account for?

Quick answer: With ≈ 22% of all ad-supported streaming subscribers, Paramount+ is the 3rd largest in the U.S.

Why this matters: Like Peacock, Paramount+ is in a strong position to build a massive ad business since 43% of their subscribers are already on an ad-supported plan vs. 1% – 3% for Disney+/Netflix.

Big question #4: What share of total TV time do Paramount+ and Pluto TV account for?

Quick answer: Paramount+ and Pluto TV account for 1.8% of total TV time and 5% of streaming TV time.

Big question #5: How much does Paramount spend on content?

Estimated U.S. content spend for Paramount (YoY growth) according to Wells Fargo:
1) 2019 – $13.4B
2) 2020 – $14.0B (↑ 4%)
3) 2021 – $15.3B (↑ 9%)
4) 2022P – $16.4B (↑ 7%)
5) 2023P – $17.8B (↑ 9%)
6) 2024P – $19.5B (↑ 10%)
7) 2025P – $21.7B (↑ 11%)