CuriosityStream continues to make progress in profitability, touting the strongest quarterly EBITDA performance since it became a public company in 2020. But while the company reduced financial losses, it came at a cost to CuriosityStream’s overall subscriber base.
The SVOD service’s total paid subscriber count decreased from 25 million to about 23 million on a sequential basis, said CuriosityStream CEO Clint Stinchcomb on Wednesday’s earnings call, due to CuriosityStream not renewing one of its existing bundled agreements.
Without going into specific details about the deal’s termination, Stinchcomb stated “the marketing was heavily focused on a strategically important but concentrated DMA for us, which exposed Curiosity to some key constituencies really important to other parts of our business.”
Still, he added Curiosity continued to grow direct subscribers, both year-over-year and sequentially, while maintaining “low single-digit monthly subscriber churn.”
As of September 30, Curiosity’s overall revenue stands at $23.6 million, up 26% year-over-year. The company reported a net loss of $4.5 million, compared to a net income of $0.8 million in the year ago period. It reported EBITDA loss of $4.2 million – exceeding the company’s guidance range by nearly $5 million – compared to an EBITDA loss of $8 million in Q3 2021.
Content licensing made up the bulk of this quarter’s revenue at $10.8 million, said Curiosity CFO Peter Westley, who joined the company in May. While direct revenue, which includes Curiosity’s direct-to-consumer and partner direct categories, came in at a combined $8.6 million. Bundled distribution saw $2.6 million in revenue.
Stinchcomb went on to highlight bundled distribution as a “key pillar” of Curiosity’s streaming strategy, helping the service gain a competitive advantage in the space. Curiosity is seeing a “continued uptake” in its Smart Bundle – introduced late last year – and this quarter signed on a Netherlands-based MVPD as a new distribution partner.
“Bundled distribution generates multiyear recurring revenues and is an excellent source of opportunity for our direct and content licensing categories,” said Stinchcomb. “And with partnerships across the globe, it also provides us with significant geographical diversification.”
Content-wise, Curiosity in July debuted “Cracking the Code,” an eight-part original series recounting consequential mysteries throughout history, as well as other titles like “Planet Insect” and the six-part “Titans: The Rise of Hollywood” series.
Also in July, Curiosity added Da Vinci Kids – an educational streaming and interactive learning platform – to its Smart Bundle slate, bringing the bundle’s total service tally to seven.
The company also has a foothold in the free ad-supported streaming TV (FAST) space, launching in March its first FAST channel – Curiosity Now – on LG smart TVs. Stinchcomb noted FAST is a key component of Curiosity’s overall audience building strategy.
"But what I will say about FAST is that it offers for a company like ours more than just a monetization benefit,” he said. “In our case, we can also use our FAST channels to promote to our direct subscription tiers.”
Further promoting its content. Curiosity in September launched its 100 Days of Curiosity campaign, showcasing notable titles that have premiered on Curiosity throughout the streamer’s eight-year history. The campaign began on September 23 and is set to run through the end of the year.
Stinchcomb said Curiosity is particularly excited about the promotion, as it’s “emblematic of the range of quality content on Curiosity.”
“I think what we found is emphasizing this whole 100 days approach, it's a positive impact on engagement. It's had a positive impact on the duration of viewing,” he said. “And it's something that's easy for people to understand and it's a great way for us to reposition our content and re-highlight what is so great about CuriosityStream.”