He previously announced Showtime’s integration into Paramount+ gets closer as the company reports your taxable first-quarter earnings. Paramount+ with Showtime will launch in the third quarter.
While the integration is anticipated to generate about $700 million in future annual expense savings, which Paramount announced last quarter, it also resulted in a $1.7 billion programming charge in the first quarter.
Paramount+ gained 4.1 million subscribers, bringing the total to 60 million, up from 56 million subscribers in the fourth quarter of 2022. The company attributed global subscriber growth to its strong library of content, including “Star Trek: Picard,” “1923,” “Tulsa King,” “Mayor of Kingstown,” “Top Gun: Maverick “, “Teen Wolf: The Movie” and the NFL Playoffs.
“In connection with our plan to integrate Showtime into Paramount+ and efforts to streamline and size our international operations to align with our broadcast strategy and close or globalize some of our international channels, during the first quarter of 2023, we reviewed our content portfolio. and determined that we would not use certain content on our platforms,” the company wrote in its letter to shareholders.
Accordingly, we recorded programming charges, which consisted of impairment charges for content removed from our platforms or abandoned, development cost write-offs, and contract termination costs.
Paramount also reported a loss of $1.1 billion and revenue of $7.3 billion, below analyst expectations of $7.42 billion.
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