Paramount+ has found better footing in the streaming market.
Paramount recently revealed in its Q1 2023 earnings results that its streaming service, Paramount+, is rapidly growing into a stable, profitable offering, reaching a new milestone thanks to new originals and returning shows.
Paramount previously launched Paramount+ on Mar. 4, 2021, though it is a rebranded version of its past offering, CBS All Access, which the company released on Oct. 28, 2014, per Fierce Video.
Paramount+ Subscriber Growth Details
Paramount mentioned in its Q1 2023 Earnings Report that Paramount+ had accrued more than 60 million subscribers during the past quarter, with it attracting 4.1 million more people to subscribe to the service. This subscriber growth increased the revenue it generated by as much as 65% year-over-year.
The company credited the subscriber growth to a "strong content slate" that included original shows like "1923" and "Tulsa King" and returning shows like "Mayor of Kingstown" and "Star Trek: Picard." The addition of film franchises to the streaming service, such as "Top Gun: Maverick," "Teen Wolf: The Movie," and the NFL Playoffs, helped Paramount+ reach the 60 million milestone.
That's not all it achieved during 2023's first quarter - it also became the no. 1 premium streaming service in the US in sign-ups in the quarter and since launch in Mar. 2021, per an Antenna report.
Aside from the revenue Paramount+ generated thanks to its streaming service, the revenue the streaming service generated from advertisements rose 15% year-over-year thanks to the service's strong engagement with audiences - contributing to the 65% revenue growth Paramount+ experienced.
Engadget mentioned in its report that Paramount+ could grow as it did due to it taking advantage of its rivals' misfortunes - Netflix doesn't have much room to grow due to saturation and modest growth in subscribers during the same period. Meanwhile, Disney+ managed to attract 200,000 domestic subscribers in the US and Canada, per Tech Crunch - another modest growth for a streaming service with plenty of offerings.
What To Expect From Paramount+
Paramount expects that Paramount+ would have healthy subscription revenue growth in the near future as a result of Paramount+ combining with Showtime, a premium service of Paramount's subsidiary that features original series, documentaries, and box-office hit films, per its official website.
Aside from that, Paramount seems content with the status quo for now as it doesn't seem keen to change its strategy for Paramount+ in the foreseeable future. The streaming service is still leaning on Star Trek shows like "Strange New Worlds" and sports exclusives like the UEFA Champions League.
However, the new content Paramount adds to its streaming service may prove to be a double-edged sword as it could force the company to hike prices like it recently did. Whether viewers are willing to stay subscribed to the streaming service despite the potential price is still debatable.