Direct-to-Consumer Performance - Paramount's Direct-to-Consumer segment generated approximately 26% of consolidated revenues in 2024[27] - Paramount+ achieved a 15% year-over-year subscriber growth, reaching 77.5 million subscribers as of December 31, 2024[20] - Direct-to-Consumer segment generated approximately 26% of consolidated revenues in 2024, up from 22% in 2023 and 16% in 2022[41] - In 2024, Direct-to-Consumer revenues were comprised of approximately 72% from subscriptions and 28% from advertising[40] - Paramount's subscriber growth on Paramount+ reached 77.5 million, a 15% increase year-over-year as of December 31, 2024[20] Streaming Services Growth - Pluto TV grew 8% in hours watched for the year, solidifying its position as a leader in the FAST streaming service market[20] - Pluto TV experienced an 8% growth in hours watched during 2024, solidifying its position as a leading free advertising-supported streaming service[20] - Pluto TV offers a broad range of curated live linear channels and on-demand content across various genres[43] Film and Entertainment Success - Paramount Pictures released five number one films at the domestic box office, with the Sonic the Hedgehog series generating $1.2 billion globally[21] - Filmed Entertainment generated approximately 10% of consolidated revenues in 2024, consistent with 2023, but down from 13% in 2022[45] - Theatrical, licensing, and other revenues accounted for approximately 27%, 72%, and 1% of Filmed Entertainment's total revenues in 2024, respectively[45] Television Network Performance - CBS maintained its position as America's number one broadcast network in primetime for the 16th consecutive season, featuring eight of the top 10 broadcast series[22] - CBS News saw a nearly 60% increase in total minutes watched on streaming platforms for the year[23] - CBS operates 29 owned broadcast television stations in the five largest U.S. television markets, serving local news and programming[32] - CBS Sports Network broadcasts a variety of live professional, amateur, and college events, including NCAA Division I tournaments and the Masters[37] - CBS Media Ventures produces and distributes original series programming across various genres, licensed to television stations for local broadcast[39] Regulatory Compliance and Challenges - The company is subject to FCC regulations, which can impose substantial fines and affect broadcast licenses[66] - Television broadcast licenses in the U.S. are typically granted for eight-year terms, requiring timely renewals to continue operations[68] - The FCC's local television ownership rule generally prohibits common ownership of two full-power stations in a market unless specific conditions are met[70] - Under the national television ownership rule, one party may not own stations that reach more than 39% of U.S. television households[72] - The Communications Act restricts foreign ownership to a maximum of 25% voting power or equity without FCC approval[73] - The company has elected to negotiate retransmission consent agreements with MVPDs for the right to carry its broadcast television stations[74] - The FCC mandates that broadcasters comply with content regulations, including restrictions on obscene and indecent material[75] - The company is required to air three hours per week of educational programming for children aged 16 and younger[76] Strategic Transactions - The company entered into a transaction agreement with Skydance Media, involving an investment of up to $6.0 billion into a new holding company, New Paramount[15] - The transaction includes a cash-stock election allowing stockholders to convert shares into cash or New Paramount Class B Common Stock[17] - The expected closing of the Skydance transaction is in the first half of 2025, subject to regulatory approvals[18] Future Initiatives - The company plans to maximize cash flow from traditional businesses while focusing on Direct-to-Consumer profitability[14] - The company is participating in ATSC 3.0 partnerships to enhance broadcast quality and may enter additional partnerships in the future[77] - The company is subject to various data protection and privacy laws that impact how it collects and processes personal data[78] - The company is committed to protecting its intellectual property rights, which are crucial for revenue generation[79]
Paramount (PARAA) - 2024 Q4 - Annual Report