Paramount (PARA) - 2021 Q4 - Annual Report

Subscriber Growth - Global streaming subscribers increased to 56.1 million, an 88% year-over-year growth[13] - Paramount+ reached 32.8 million global subscribers as of December 31, 2021[13] - Pluto TV surpassed $1 billion in revenue for the year and had 64.4 million global monthly active users, a 49% increase year-over-year[13] Revenue Breakdown - TV Entertainment accounted for approximately 44% of consolidated revenues in 2021[20] - Cable Networks contributed approximately 47% of consolidated revenues in 2021[20] - Filmed Entertainment represented about 9% of consolidated revenues in 2021[21] - In 2021, Cable Networks generated approximately 47% of CBS's consolidated revenues, with affiliate revenues accounting for 39% of total revenues in this segment[47] - Filmed Entertainment generated approximately 9% of consolidated revenues in 2021, 9% in 2020, and 11% in 2019[64] - In 2021, Filmed Entertainment licensing and other revenues accounted for approximately 92% of total revenues, while theatrical revenues accounted for 8%[64] Content and Programming - Paramount+ features over 2,000 live and on-demand soccer matches annually, including UEFA matches[28] - A Quiet Place Part II was a significant hit, launching in theaters and on Paramount+ after a 45-day theatrical window[14] - CBS Sports Network broadcasts a diverse slate of sports, including NCAA Division I Men's Basketball Tournament and NFL games, contributing to significant viewership[39] - CBS Studios produces a wide range of content, including popular series like NCIS and Blue Bloods, and maintains an extensive library of intellectual property, including the Star Trek universe[36] - CBS Media Ventures produces first-run syndicated programming, including popular shows like The Dr. Phil Show and Jeopardy![37] - Nickelodeon has been the number-one-rated advertising-supported basic cable network for 26 consecutive years among kids aged 2 to 11[52] - In 2021, Nickelodeon launched a licensing partnership with Melissa & Doug to deliver PAW Patrol and Blue's Clues and You! co-branded toys[52] - Nickelodeon Hotels & Resorts Riviera Maya opened in 2021 in partnership with Karisma Hotels & Resorts and Grupo Lomas[52] - Paramount Pictures has an extensive library of over 1,200 film titles and rights to nearly 2,900 additional films[65] - Paramount Animation co-produced The SpongeBob Movie: Sponge on the Run, which was digitally released in March 2021[67] Financial Activities - The company raised approximately $2.7 billion in net proceeds from public equity offerings in March 2021[18] - The company operates television stations that reach approximately 38% of all U.S. television households, attributed with reaching about 24% for purposes of the national ownership rule[98] - The company files annual, quarterly, and current reports with the SEC, which are available on its website and the SEC's website[120] - Material financial information is announced through SEC filings, press releases, and public conference calls, with an emphasis on transparency[121] International Expansion - The company launched Pluto TV in Italy and plans to expand to the Nordics in 2022[16] - CBS's international operations include extensions of Paramount+ and Pluto TV, expanding its global footprint in the media landscape[45] - ViacomCBS Networks International provides distribution and advertising solutions for partners across more than 180 countries[60] Diversity and Inclusion - As of December 31, 2021, approximately 49% of U.S. employees were female, and about 39% self-identified as part of a racial or ethnic minority group[85] - The company has set new goals for 2021 to accelerate performance on key diversity, equity, and inclusion (DE&I) objectives, including a target global hire and promotion rate for female Senior Vice Presidents and above[85] - The company has been recognized for its workplace culture, including being named a 2021 Most Loved Workplace by Newsweek and one of America's Best Employers for Diversity by Forbes[89] - The company sponsors eight active employee-led Employee Resource Groups (ERGs) with 53 chapters in 19 locations worldwide, with more than half of employees being members[85] Employee Engagement and Well-being - In 2021, the company launched its first global employee engagement survey, which was administered by an independent third party, to assess efforts around employee engagement, inclusion, and well-being[89] - The company launched a behavior-change app in 2021 to help employees manage stress and improve overall well-being[89] Legal and Regulatory Compliance - The company is subject to FCC regulations, which impose a maximum forfeiture penalty of approximately $445,445 per indecent or profane utterance, with a maximum exposure of about $4.1 million for any continuing violation[101] - The company has three pending renewal applications for its television broadcast licenses as of February 14, 2022, and will be filing applications for most remaining stations in 2022 and 2023[95] - The company is subject to complex laws and regulations regarding privacy and data protection, which may incur significant costs[109] Intellectual Property Protection - The company is actively engaged in protecting its intellectual property through various technologies and enforcement activities, including monitoring and litigation[109] - The ongoing challenge of piracy and the sophistication of infringing services continue to impact the company's ability to protect its intellectual property[110] - The company has had notable success with site-blocking efforts in various regions to combat piracy[109] - The company is involved in educational outreach to combat intellectual property infringement and enhance legal protections[110] Executive Leadership - The executive team includes Robert M. Bakish as President and CEO, Naveen Chopra as CFO, and other key positions filled by experienced professionals[111][112][113][114][115][116][117][118][119]