Days After AFL Talks Paramount Global Announces Revenue Declines For TV Network
Paramount Global the owners of Network Ten and Paramount + who are also the US TV network that the AFL are banking on in an effort to jack up the price of AFL rights in Australia has announced that their TV Division witnessed a 6% decline in revenue.
In their latest SEC filings in the USA the Company that their TV division witnessed a 6% year-over-year decline in revenue. Advertising revenue decreased 13% year-over-year, primarily reflecting an impact of 17 percentage points from the comparison against CBS’ broadcasts of Super Bowl LV in the prior-year quarter.
Currently the AFL is punting on the US network sticking their hand up to bid for the 2025 AFL rights after AFL management met with network executives last week in New York. The US visit is seen as a move to take a key Australian code away from Australian owned networks such as Foxtel, Nine and Seven networks.
On the bright side Paramount Global (formerly ViacomCBS) announced that it added 6.8 million new Paramount+ subscribers in the first quarter of 2022. Netflix announced a loss of 200,000 subscribers with the network facing a loss of 2M subscribers in the next quarter.
Paramount Global, formerly ViacomCBS, also reported an overall total of 62.4 million global subscribers however the growth numbers for Australia were not broken out nor were the revenue numbers for Network 10.
The decline in sports subscribers watching events such as Super Bowl is seen as a problem for the US network whose real strength is entertainment movie content spanning drama TV series and documentaries.
Paramount CEO Bob Bakish who met with AFL CEO Gillon McLachlan last week said that the company is aiming to hit 100 million subscribers to Paramount+ by 2024.
During these earnings, he also touted during the earnings call that total content consumption had grown to 14 billion hours across its owned and operated platforms.
A major contributor to the growth is original programming, including Halo and Star Trek movies.
The subscriber growth contributed to an increase in the company’s bottom line, with revenue from the service growing by 148 percent year-on-year to $585 million in Q1 2022.
“The first quarter once again demonstrated the power and potential of Paramount’s unique assets and the company’s continued momentum,” said Paramount Global CEO and President Bob Bakish.”
Recently Netflix’s announced that they had lost about 200,000 customers in the first quarter of 2022, marking its first subscriber drop in a decade.
The company has since embarked on a series of cost-cutting measures, cancelling series like Space Force and gutting the editorial staff of its Tudum fan site.