Paramount Global's Q2 2025 Earnings Call: A Deep Dive into Contradictions on Ad Revenue, Sports Strategy, and Paramount+ Profitability

Advertising revenue and market dynamics, sports franchise strategy, Paramount+ profitability timeline and content strategy, international expansion and business model strategy, strategic partnerships and independence of Paramount+ are the key contradictions discussed in Paramount Global's latest 2025Q2 earnings call



Streaming Growth and Strategic Content Choices:
- Paramount+ reported 77.7 million subscribers by the end of Q2, an increase of 9.3 million year-over-year, though it saw a 1.3 million drop from Q1 2025.
- The growth was driven by a strategic focus on delivering fewer but top-ranking original hits, such as "Landman," "Yellowjackets," and "The Shining."

D2C Revenue and Profitability Improvement:
- D2C revenue for Paramount increased by 15% year-over-year to $2.2 billion, with subscription revenue growth accelerating to a robust 22%.
- This improvement was powered by increased engagement, reduced churn, and higher Average Revenue per User (ARPU), reflecting the effectiveness of the new content strategy.

Transformation into Streaming-First Company:
- Total company revenue grew by 1% year-over-year to $6.8 billion, with D2C revenue growth outpacing linear declines.
- The shift to a streaming-first model was achieved through organizational restructuring, which led to $800 million in annual run-rate non-content expense savings in the past year.

Linear TV Challenges and Sports Demand:
- TV Media revenue was $4 billion with a 4% decline in advertising, due to higher CPMs offset by viewership declines.
- Despite challenges, sports content saw strong demand, with CBS Sports golf coverage up 13% year-over-year, demonstrating the value of live sports.