Paramount Skydance — the owner of Network 10 and streaming service Paramount+ — is preparing to increase its subscription prices in Australia in the first quarter of 2026, according to a recent letter to shareholders. The move comes as its locally owned free-to-air network, Ten, continues to post heavy losses.

Over the past two years, Network 10 has lost close to half a billion dollars, with $322 million in losses in 2023 and a further $162 million last year. Insiders blame poor content management and failed programming strategies for the network’s ongoing decline.

Despite the financial pain, Ten’s CEO Beverley McGarvey (seen below) said the broadcaster remains interested in bidding for the NRL broadcast rights from 2027 — a move that would pit it directly against Nine and Foxtel.

While Ten struggles, Australian viewers appear to be migrating toward Paramount’s streaming platform. Paramount+ is already profitable in Australia, delivering $3.5 million in profit in 2023 and $3.4 million in 2024. Globally, the service added 1.4 million new subscribers in the third quarter, reaching a total of 79 million.

Parent company Paramount Skydance said it plans to invest $1.5 billion in new programming for Paramount+ next year. The group expects its streaming division to be profitable this year and to expand its margins in 2026, aided by the planned price rises in Australia.

The announcement coincides with the company’s first earnings report since Skydance completed its acquisition of Paramount in August. In the latest quarter, Paramount+ revenues grew 24%, driven by ongoing investment in its direct-to-consumer (DTC) business. Management said content remains the group’s top priority.

The company has also reorganized its streaming operations to create “greater alignment between global and regional teams,” aiming for faster decision-making and a unified approach to content and distribution.

While Paramount Skydance highlighted increased investment in local content across Latin America, Canada, and parts of EMEA, Australia was not specifically mentioned. The company expects its global DTC business to be profitable by 2025, with further growth projected in 2026.

Total revenue for 2026 is forecast to reach US$30 billion, led by accelerating streaming growth and improved profitability.

For the most recent quarter, pro forma revenue came in at US$6.7 billion — slightly below analyst expectations of US$6.99 billion, but still a 3.9% year-on-year increase. Despite the shortfall, the company’s stock rose 6% as investors reacted positively to double-digit streaming growth.

TV Media revenue, which includes Network 10, declined 12%, while filmed entertainment grew 30%, driven by Skydance’s licensing and content sales.

Operating income reached US$80 million pre-merger (3% margin) and US$244 million post-merger (6% margin). Adjusted operating income rose to US$297 million (12% margin) and US$655 million (16% margin), respectively.

Paramount Skydance ended the quarter with US$3.3 billion in cash and US$13.6 billion in gross debt. Management also highlighted investments in a unified technology platform for Paramount+ and other streaming services, aiming to enhance performance, improve user experience, and achieve cost efficiencies.

The company also confirmed it is exploring the use of AI to improve content recommendations and personalization across its platforms, as part of broader efforts to drive innovation and audience engagement.