Paramount Global reported a mixed bag of results when it released its Q3 earnings recently. While the net subscriber additions for the company’s flagship streaming platform, Paramount+, came in at 4.6 million (comfortably ahead of the 3.25 million forecast), the company’s revenue fell short of expectations. As a result, the markets are questioning the financial prudence of the company’s investments in streaming which have impacted its profitability in the near term.
This is the fundamental dilemma Paramount has been faced with for a while now. Does it make sense to play the role of “content arms dealer” for the industry with valuable licensing deals at the expense of developing its own platforms to compete in the direct-to-consumer race?