Paramount Reports Revenue Drop, But Streaming Gains

Paramount Global, the parent company of CBS, Comedy Central, Nickelodeon, MTV, and Paramount Pictures, announced its first quarter 2025 financial results amid ongoing preparations for a merger with Skydance Media. The company, a major player in media and entertainment, reported mixed performance across its streaming, filmed entertainment, and television media segments, while navigating macroeconomic uncertainties and legal challenges.

Paramount Global reported a 6% year-over-year revenue decline, totaling $7.19 billion for Q1 2025. However, the company noted that when excluding the impact of broadcasting Super Bowl LVIII on CBS in 2024 (which significantly boosted prior-year figures), revenue grew by 2%. The Super Bowl’s absence in Q1 2025 created challenging comparisons across multiple segments.

The Paramount+ streaming platform added 1.5 million subscribers, reaching a global total of 79 million subscribers. This growth reflects Paramount’s ongoing investment in streaming as a core growth driver. Revenue in the direct-to-consumer segment, which includes Paramount+ and other streaming services like Pluto TV, rose 9% compared to Q1 2024. However, advertising revenue within this segment fell by 9%, primarily due to the Super Bowl’s impact on the prior year’s figures. 

Paramount emphasized that its streaming business continues to gain traction, supported by exclusive content like Yellowstone spinoffs, Star Trek series, and live sports.

The filmed entertainment division, encompassing Paramount Pictures, saw a 4% revenue increase to $627 million. This growth was driven by strong box-office performances from films such as Sonic the Hedgehog 3 and Novocaine, a thriller that resonated with audiences. However, theatrical production revenue declined, reflecting a shift in consumer preferences toward streaming and challenges in the broader theatrical market. Paramount’s film slate remains a key asset, with upcoming releases expected to bolster this segment.

Television media revenue, which includes CBS, Comedy Central, Nickelodeon, and other cable networks, dropped 13% year-over-year. The decline was largely attributed to the absence of Super Bowl advertising revenue, which had significantly boosted Q1 2024 results. Television advertising revenue specifically fell 21%, though Paramount noted that, excluding the Super Bowl, ad revenue was flat. The company highlighted resilience in its cable networks despite cord-cutting trends and a softening ad market, with popular shows like NCIS and SpongeBob SquarePants maintaining strong viewership.

Strategic Developments

• Merger with Skydance Media: Paramount is advancing its merger with Skydance Media, a production company known for co-producing films like Top Gun: Maverick and Mission: Impossible. The deal, currently under review by the FCC, is expected to close in the first half of 2025. The merger aims to strengthen Paramount’s content pipeline and financial position by combining Skydance’s production expertise with Paramount’s extensive media assets. The transaction has garnered significant attention as Paramount seeks to scale its operations in a competitive media landscape dominated by giants like Netflix and Disney.
• Legal Challenges: Paramount is also addressing a $20 billion lawsuit filed by former President Donald Trump against its CBS News division. The lawsuit stems from a 60 Minutes interview with then-Democratic presidential candidate Kamala Harris, which Trump claims was misleading. According to The Wall Street Journal, settlement discussions have begun, but the parties remain far apart. Mediation talks are underway, and the outcome could have financial and reputational implications for Paramount.