ViacomCBS saw its streaming subscriber base expand by 4.3 million during the third quarter, bringing its global total to nearly 47 million.
During today’s earnings call, CFO Naveen Chopra said the Paramount+ drove the significant majority of new subscriber additions through a mix of domestic and international customers. He also hinted at some engagement growth on Paramount+, saying that the average monthly share of domestic paid subscribers active on the service (or monthly active rate) grew sequentially and year over year while average monthly hours per active domestic subscriber also grew.
Chopra also said that ViacomCBS’ global streaming subscription ARPU increased 8% year over year. The increases in engagement and subscriber growth translated to streaming subscription revenues rising 79% to $548 million.
Paramount+ could be due for another subscriber addition boost soon after ViacomCBS reached a new distribution deal with T-Mobile. The wireless carrier will now offer a free year of Paramount+ Essentials to its wireless subscribers, an agreement that ViacomCBS CEO Bob Bakish praised for its potential to expose new users to the platform.
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Pluto TV, the company’s ad-supported streaming service, also expanded its user base to 54.4 million global monthly active users and grew its revenue by 99% year over year.
“Pluto’s success continues to be driven by growth in users, engagement and sell-through, which translated to a 66% increase in Pluto TV domestic ARPU in the quarter,” said Chopra, who added that Pluto still accounts for most of ViacomCBS’ streaming advertising revenue but that Paramount+ is growing its ad contribution.
In all, ViacomCBS’ streaming advertising revenue grew 48% to $531 million and helped spark a 62% spike in streaming revenues during the third quarter. The company’s consolidated revenue rose 13% during the quarter but adjusted OIBDA declined slightly due in part to increased investment in Paramount+.