A Paramount Global streaming platform has emerged as the fastest-growing service in America thanks to its commitment to live sports.
Paramount+ reported 46 million subscribers for the third quarter ending Sept. 30. The service — which launched in March 2021 — added 4.6 million subscribers in Q3 but lost 1.9 million.
In August, Paramount extended its deal for U.S. media rights to the UEFA Champions League on a six-year, $1.5 billion pact that runs from 2024 to 2030. Paramount has held U.S. rights to the soccer competition since the 2019-2020 season, for which it previously paid $100 million per year.
Paramount beat out Amazon as a finalist after UEFA also met with FOX, ESPN, and others.
- In Q3, Paramount+ was the top streaming service in the U.S. in signups and gross subscriber additions.
- The growth was driven by the start of the NFL regular season, the UEFA Champions League, and launches in international markets.
- Outside of the U.S., the Premier League also helped add to the service’s subscriber base.
Despite the growth, Paramount’s streaming options have yet to turn a profit. In H1 FY2022, Paramount’s streaming services — which include the free platform Pluto — lost $901 million.
The losses have spurred speculation of a merger with Warner Bros. Discovery or NBCUniversal to compete with Disney and Netflix — the only profitable major streaming service.
Paramount generated $6.92 billion in revenue in Q3 2022 — a 5% increase year-over-year — but missed Wall Street estimates of $7 billion. Paramount attributed the missed mark to a decline in advertising revenue and consumers changing from pay-TV subscribers to streamers.