D2C Profitability and Subscriber Growth

In Q3 2024, executives highlighted that the D2C segment had achieved profitability with strong adjusted OIBDA improvements and subscriber additions (e.g., 3.5 million subscribers to reach 72 million). " " " In Q4 2024, they reported a nearly $1.2 billion improvement in D2C profitability and a boost of 5.6 million subscribers, emphasizing domestic profitability in 2025. " "

In Q2 2025, Paramount reported a 6x improvement in adjusted OIBDA for D2C, with profitability gains of $300 million year-to-date and a subscriber total of 77.7 million—although there was a 1.3 million decline from Q1 due to an international distribution agreement expiring. " "

Consistent strong performance with robust subscriber growth and profitability, though recent headwinds from international factors are beginning to emerge.

Streaming Engagement and Digital Advertising Revenue

Q3 2024 and Q4 2024 discussions emphasized record streaming engagement—with significant increases in global watch time (up to 20% year-over-year) and strong digital advertising growth (e.g., 18% in DTC ad revenue and a focus on alternative measurement solutions). " " " " " "

In Q2 2025, streaming engagement remained strong with a 14% year-over-year increase and continued record performance across quarters, but digital advertising revenue in the DTC segment declined by 4% due to increased supply in the digital ad marketplace. " " "

While streaming engagement remains consistently positive, digital advertising revenue now faces emerging challenges, suggesting a slight negative shift for ad monetization.

Financial Performance and Free Cash Flow/Adjusted EBITDA Trends

Across Q3 2024 and Q4 2024, Paramount reported significant improvements in adjusted OIBDA (e.g., a 20% increase and a full-year annual growth to $3.1 billion) and favorable free cash flow trends, despite pressures from restructuring and higher content costs in some segments. " " " " "

Q2 2025 continues to build on these gains with strong growth particularly in the D2C segment; however, pressures in the TV media segment—such as declining affiliate revenues—remain a concern. "

Overall momentum in the D2C segment remains steady, though traditional segments like TV media are showing mixed results, highlighting a transitional phase in overall financial performance.

Cost Reductions and Operational Efficiency

Q3 2024 noted significant non-content cost savings of about $500 million and improvements in marketing efficiency from a diversified subscriber base. " " Q4 2024 reiterated that cost-reduction initiatives and operational improvements in both D2C and linear segments were key to driving improved profitability. " "

In Q2 2025, Paramount realized over $800 million in annual run-rate non-content expense savings and continued restructuring initiatives to enhance operational efficiency, with additional focus on aligning traditional and streaming operations. " " "

A consistent focus on cost reductions and efficiency is evident across periods, with an increase in scale and renewed commitment to aligning business segments—reflected in a positive sentiment about operational improvements.

Content Strategy and Programming

Both Q3 and Q4 2024 calls stressed a strategy of producing breakthrough originals and leveraging strong franchises. Executives highlighted hit series, franchise-driven films (like Sonic and Mission Impossible), and robust sports programming, which drove high engagement and strong ratings on both Paramount+ and CBS. " " "

In Q2 2025, Paramount emphasized a content strategy centered on a volume of original hits across streaming, sports, film, kids, and unscripted content, with titles like Landmen, Yellowjackets, and key sports events reinforcing its position in the market. " " "

The content strategy remains a major strength with consistent investments in high-quality, breakthrough original programming that supports both streaming and linear platforms, maintaining a positive outlook for future engagement and revenue.

Affiliate Revenue Decline

In Q3 2024, affiliate revenue declined by about 6.6% year-over-year (impacted by the exit of certain pay-per-view events), and Q4 2024 saw a decline of 6.7% due to ongoing linear ecosystem challenges. " " "

In Q2 2025, affiliate revenue was reported to have declined by 7% year-over-year, attributed to market subscriber trends—even as overall company affiliate and subscription revenue saw a net positive growth of 5%. "

The decline in affiliate revenue is a recurring issue across periods with a slight worsening in the current period, pointing to continued structural challenges in the linear TV environment.

International versus Domestic DTC Performance

Q3 2024 provided a detailed breakdown, noting that domestic DTC had achieved profitability (with initiatives like the Charter bundle) while international operations lagged by 12 to 18 months due to differing market dynamics. Q4 2024 reiterated a focus on achieving domestic profitability without providing extensive international details. " " " "

In Q2 2025, there was limited discussion on this topic apart from noting that an international distribution agreement expiration contributed to a 1.3 million subscriber decline, indicating that international factors are impacting overall subscriber metrics. "

While domestic DTC performance remains robust, international challenges persist and are now highlighted as headwinds in subscriber growth, underscoring an ongoing area of concern for future profitability.

Monetization Challenges in DTC Engagement

Q4 2024 discussed that although engagement metrics were strong, monetization lagged behind—viewership growth was ahead of revenue, with plans to boost ARPU through eventual price increases. In Q3 2024, the focus was on strong revenue and subscriber gains without explicitly calling out monetization issues. " " "

In Q2 2025, despite robust subscription revenue growth (22% increase) and improved ARPU (9% increase), DTC advertising revenue fell by 4%, underscoring the challenge of converting increased engagement into proportional ad revenue. " "

There is emerging caution: while engagement and subscription numbers remain high, the challenge of fully monetizing these improvements—especially in advertising—has become more pronounced in the current period.

Advertising Measurement Disputes

In Q3 2024, George Cheeks acknowledged an ongoing dispute with Nielsen, emphasizing the need for innovation and alternative measurement while noting that content and scale continued to drive ad value. " " Q4 2024 saw a significant turn when a multiyear deal with Nielsen was closed, demonstrating a resolution of prior disputes. "

In Q2 2025, there was no mention of advertising measurement disputes, suggesting that the earlier issues with Nielsen have been resolved or deprioritized in the conversation. "

A notable shift from explicit disputes in Q3 2024 to a resolved state by Q4 2024, with the absence of discussion in Q2 2025 indicating that measurement and attribution challenges have been largely addressed.

Earnings Call Structure Changes

Q3 2024 and Q4 2024 earnings calls included active Q&A sessions, allowing for detailed analyst–executive interactions. " " "

In Q2 2025, the call was conducted without a Q&A session, with executives stating that this would be the final earnings call in the current configuration ahead of the Paramount Skydance transaction. "

The shift in call structure—moving from interactive Q&A sessions to a highlights-only format—signals an upcoming organizational transition and could impact stakeholder communication in the near future.