Paramount to See Strong Direct-To-Consumer Growth Amid Moderating TV and Film Revenues

Paramount Global (NASDAQ: PARA) is expected to see continued strong growth in its direct-to-consumer (DTC) division, while revenues across its TV media and film entertainment segments are expected to moderate. According to Visible Alpha consensus, the company’s DTC division is projected to achieve a +17% year-over-year revenue increase in 2024. This growth is estimated to be driven by a +35% rise in Paramount+ revenues and a +21% increase in Pluto TV revenue, partially offset by a -59% decline in revenue from Showtime OTT. The DTC division, accounting for approximately 26% of the company’s total revenue in 2024, is estimated to see its share rise to 48% by 2034.

In 2023, Paramount experienced a -20% year over year decline in its film entertainment revenue, impacted in part by labor strikes involving the actors’ and screenwriters’ guilds, which hindered new programming. Analysts expect revenue to rebound slightly in 2024 with a modest +2% growth, while TV media revenues are projected to decline by -2% year over year. Looking ahead, DTC revenues are expected to maintain strong double-digit growth, while film entertainment revenues are expected to grow at a more modest pace, and TV media revenues are forecasted to continue declining.

Note: On Monday, June 3, 2024, reports surfaced that Paramount and Skydance Media have agreed on the terms of a new M&A deal, which analysts have not yet incorporated into their forecasts.