Paramount+ Profitability and Sub Growth
Q: How will Paramount+ profitability and sub growth trend?
A: Most of the year-over-year improvement in D2C profitability in 2024 will be driven by the domestic Paramount+ business. While sub growth in 2024 will be lower than in 2023, we expect very healthy Paramount+ revenue growth. Revenue is more important than subs, and we're feeling very good about the revenue growth trend on Paramount+. We anticipate domestic profitability in 2025.

Programming Costs and Strikes Impact
Q: How will programming costs evolve post-strikes?
A: Programming cost growth for Paramount+ in 2024 will be significantly lower than the ARPU growth of over 20%. We plan to only spend about 50% of the strike savings back in 2024, helping drive healthy free cash flow growth. The $1 billion charge includes programming and restructuring costs, with about $200 million in restructuring.

Licensing Revenue Outlook
Q: Will licensing revenue return to previous levels?
A: We expect licensing revenue to grow in 2024, as the impact from the strikes subsides. Licensing was impacted last year, so this should be a more normal year, though likely back-half loaded. Licensing helps drive both OIBDA and cash flow, contributing to our goal of delivering free cash flow growth in 2024.

M&A Interest and Strategic Options
Q: Any comments on M&A and strategic options?
A: We're always looking for ways to create shareholder value, but we won't comment on speculation or timelines. We're focused on disciplined execution to return to significant earnings growth this year.

Distribution Contracts and Bundling Strategy
Q: Thoughts on upcoming distribution renewals and bundling?
A: Our content offering is strong and must-have for U.S. pay-TV consumers. We have many levers in distribution deals, including linear networks and streaming products. We're big believers in bundling, which can strengthen the consumer proposition, drive subscribers, reduce churn, and lower subscriber acquisition costs. We have substantial experience with bundling in streaming, both internationally and with partners like Walmart+ in the U.S..

Sports Streaming JV and Competitive Positioning
Q: How does the sports JV affect your competitive stance?
A: We believe an integrated sports entertainment strategy creates value, as consumers engage with both sports and entertainment content. Our sports offerings like NFL, NCAA, and UEFA are locked up into the next decade, providing a sustainable advantage. The sports JV lacks a full complement of sports, missing half the NFL and other key sports, making it less ideal for true fans.

Advertising Market Trends
Q: What are the current advertising market trends?
A: We're seeing signs of stabilization in domestic advertising, with healthy scatter premiums. Sports remains a bright spot, and we're seeing growth in categories like consumer products, quick service restaurants, and retail. Digital ad revenue is strong, up 14% in the fourth quarter. We continue to enhance our capabilities in data and measurement to strengthen our position in the digital space.

Licensing Paramount+ Originals to Third Parties
Q: Will you license Paramount+ originals to third parties?
A: While we recognize the value of our content and know others do too, we continue to believe that building a scaled streaming business is the right path. We see optionality in licensing but believe using our content to drive asset value creation in the form of Paramount+ is the right plan A.