In fact, the company saw a remarkable 47% increase in subscription revenue within its streaming segment during the quarter. This boosted their overall revenue and instilled confidence in investors. Notably, Paramount’s direct-to-consumer business, which includes their streaming platform Paramount+, also experienced narrowed losses. In the second quarter of 2021, they reported losses of $424 million, compared to $445 million in the same period last year.
Paramount’s success in improving their streaming offering puts additional pressure on Disney, who will be reporting their earnings after the bell on Wednesday. Disney CEO Bob Iger has made it a top priority to revamp their media and entertainment giant’s streaming business. Over the past four quarters, Disney’s direct-to-consumer segment has suffered losses totaling $4.2 billion. However, management remains optimistic that they will break even by the end of the fiscal year 2024.
Investors Await Improvement in Disney’s Q3 Results
Investors are anxiously anticipating Disney’s fiscal third quarter results, set to be released on Wednesday. One company that has shown promising progress is Paramount, thanks in part to its strategy of bundling subscription packages together with Sky, Canal, and Walmart (WMT). Another such bundle is in the works, as Paramount plans to integrate with Showtime by the end of June.
Paramount’s total revenue experienced a 2% decrease, amounting to $7.62 billion. This figure exceeded analysts’ estimates of $7.44 billion, according to FactSet data. Furthermore, the company’s adjusted earnings per share stood at 10 cents, beating expectations that it would break even.
As a result of these positive developments, the stock experienced a 3.4% increase in premarket trading, reaching $16.63.