Observed Signal · Nov 11, 2025 · Earnings Report · Source: VideoWeek · Impact: 4/5 · Sentiment: Neutral
Paramount Skydance Earnings Call: Pluto TV Plans
Paramount Skydance, formed by an $8 billion merger between Paramount and Skydance, outlined its strategy on its first earnings call under CEO David Ellison. Since closing, the group has pursued a busy growth agenda, including a $7.7 billion seven-year UFC rights deal and high-profile partnerships with the Duffer Brothers and Activision (Call of Duty film). It also acquired Bari Weiss’s The Free Press, placing editorial leadership at CBS. Ellison described a three-pronged plan: grow Paramount’s core businesses, scale direct-to-consumer globally, and drive enterprise efficiency. On the call, executives noted revenue commitments from agency deals with Publicis and IPG aimed at directing more ad spend to digital; they argued linear assets still have value, while Pluto TV will play a central role in unifying the three streaming services (Paramount+, BET+, Pluto TV) and enabling cross-subscription upgrades. Ellison stressed a buy-versus-build approach and said acquisitions would be evaluated against three North Star goals.
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Key Takeaways & Evidence Grounding
- Paramount Skydance formed after an $8B merger between Paramount and Skydance.
- Paramount signed a $7.7B seven-year UFC rights deal.
- Paramount struck content deals with the Duffer Brothers and Activision (Call of Duty film).
- Paramount acquired Bari Weiss’s The Free Press for editorial control at CBS.
- Paramount is exploring unsolicited offers for Warner Bros. Discovery.
Connected Companies & Entities
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Recent verified developments and strategic activity across this market segment.
Paramount Skydance Unifies Tech Stack Amid Layoffs and Growth
Paramount Skydance, the post-merger entity formed by Paramount and Skydance, is shifting from integration to execution by unifying its disparate back-end tech stacks across Paramount+, Pluto TV, and BET+. The company released its first post-merger quarterly results, noting Q3 revenue just under $6.7 billion, flat versus a year earlier, with the majority of that generated after the merger closed on August 7. Direct-to-consumer revenue rose 17% to $2.17 billion in 2025, led by Paramount+ growth, which now accounts for about 80% of the DTC business. Paramount+ reached 79.1 million subscribers; subscription revenue was roughly $1.69 billion for the quarter, while advertising contributed about $479 million. Pluto TV underperformed due to lower sell-out rates. The group also announced a plan to lay off about 1,000 employees by year-end and to accelerate tech integration, including Oracle Fusion, and new partnerships with Publicis Groupe and IPG Mediabrands, complemented by the addition of Jay Askinasi to the advertising leadership team.
Paramount Skydance Prioritizes Streaming Growth Amid M&A Talks
Paramount Skydance said it is prioritizing streaming revenue growth following the merger of Paramount Global and Skydance Media. During its earnings call the company reported 10% year-over-year growth in direct-to-consumer (DTC) revenue last quarter and overall Q4 revenue up 2% to $8.15 billion. Management expects full-year revenue of about $30 billion (roughly 4% YOY growth), with DTC as the primary driver. Paramount+ grew 17% YOY and the service has 79 million subscribers, while non-Paramount+ revenue fell 16%, primarily due to Pluto. Executives said they plan price increases, investments in ad tech and programming (including expanded live sports rights such as the UFC) to raise ARPU and DTC ad revenue, and to restructure how ad inventory is sold. The company also disclosed a revised $31-per-share, all-cash bid for Warner Bros. Discovery but declined Q&A on the pursuit.
Paramount Skydance Focuses on Streaming Revenue Growth
Paramount Skydance told investors during its earnings call that direct-to-consumer (DTC) streaming revenue is the primary growth driver as the company pursues a proposed acquisition of Warner Bros. Discovery. The merged company reported $8.15 billion in Q4 revenue (2% year‑over‑year) and said DTC revenue grew 10% YOY in the prior quarter. Management expects total revenue of $30 billion for the year (about 4% YOY growth), with improved ARPU from planned price increases and accelerating subscriber growth. Paramount+ generated 17% YOY revenue growth last quarter and has 79 million subscribers; non‑Paramount+ revenue fell 16%, driven mainly by Pluto. Executives (CEO David Ellison and CFO Dennis Cinelli) said they will invest in ad tech, programming (including live sports/UFC), and ad sales practices to boost DTC ad revenue and moderate declines in linear TV ad sales.
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