Paramount+ Grows Globally, But Licensing Deals Could Cap Streaming Potential | Charts

Since rebranding in 2021, Paramount+ has steadily grown its subscriber base and reduced financial losses. Parent company Paramount Global announced in its most recent earnings report that the streaming platform has been profitable over the last two consecutive quarters. However, despite strong Q3 2024 subscriber growth of 3.5 million new subs globally, Paramount+ remains a relatively modest player compared to the streaming platforms backed by Netflix, Warner Bros. Discovery and Disney. Paramount+ ranks seventh in total on-platform demand among U.S. audiences, trailing behind Peacock, and just sixth in UCAN subscribers.

Yet despite its smaller scale, Paramount+ has achieved notable success with its streaming originals. In Q3 2024, Paramount+ originals held a 5.8% share of US demand versus just a 2.0% supply share. This 2.8x demand-to-supply ratio was second only to Apple TV+ (3.2x) among the eight premium SVODs for the quarter. Paramount+ may boast untapped potential in its original content, particularly with hit franchises like “Star Trek” and Taylor Sheridan’s various series, which serve as key drivers of subscriber acquisition, according to Parrot Analytics’ Streaming Economics system. 

While many competitors achieve scale through strategic alliances and bundling — like Comcast’s Streamsaver and the Disney-Max bundle—Paramount+ remains outside of these ecosystems. (Its only major bundle is via Walmart+). This lack of bundling could limit its growth or at least cap its retention potential. 

This leads us to another critical topic: licensing. Paramount+ relies heavily on content from Paramount Global subsidiaries, including popular long-running CBS shows and Nickelodeon’s kids titles. However, many of these titles are also licensed to other streaming platforms rather than airing exclusively on Paramount+, which reduces the platform’s retention potential and overall appeal.

This issue is not that straightforward as Paramount’s approach to licensing is a valuable revenue lever as syndication has always been for linear TV. Some of its original content, particularly CBS series, thrives on third-party platforms. Paramount Network’s “Yellowstone,” cable’s most popular show in recent years, acts as a major subscriber draw for Peacock. This raises the question: How many subscribers could “Yellowstone” attract if it were available on Paramount+ instead of Peacock? The synergy of having the show alongside other franchise elements (“1883,” “1923”) on the same platform could enhance its appeal. But would the additional subscriptions be enough to offset the lost licensing revenue?

Finding the right balance between licensing revenue and SVOD exclusivity will be crucial for the incoming Skydance team.

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