Paramount Global (PARA): Business Model Canvas [Dec-2025 Updated]

You're looking at a media giant in the middle of a massive, high-stakes pivot, and honestly, the numbers tell the whole story. As your former BlackRock analyst, I can tell you Paramount Global's 2025 strategy is a tightrope walk: scaling streaming to 79.1 million subscribers while driving $3 billion in efficiencies, all while integrating Skydance. This canvas breaks down exactly how they plan to make money from both subscription fees, which hit $2.17 billion in Q3 DTC revenue, and their vast content library across linear TV and the Pluto TV ad platform. Keep reading to see the precise structure behind this transformation.

Paramount Global (PARA) - Canvas Business Model: Key Partnerships

You're looking at the structure of Paramount Global (now operating as Paramount, a Skydance Corporation) post-merger, and the Key Partnerships are where the new leadership's strategy is most visible. Honestly, the focus is clearly on premium content acquisition and technological backbone integration, leveraging the $8 billion merger with Skydance Media that officially closed on August 7, 2025. The new entity is trading under the ticker PSKY.

The most significant content partnership is the recent, massive sports rights acquisition, which signals a major pivot for Paramount+. Here's the quick math on the Ultimate Fighting Championship (UFC) deal:

This UFC deal is designed to provide Paramount+ with a valuable, year-round content pipeline, complementing existing flagship properties like the NFL rights held by CBS, which the NFL Commissioner noted could be subject to renegotiation following the merger. The existing NFL deal with CBS for the Sunday afternoon AFC package was worth $2.1 billion annually as of early 2024.

The infrastructure backbone relies heavily on a new technology partner. Oracle is reportedly in negotiations for a major cloud software agreement, contingent on the merger, which could be worth approximately $100 million per year. This move is intended to streamline backend operations and help manage the company's substantial balance sheet, which reported $14.16 billion in total debt as of Q1 2025. For context, Skydance itself spent $2.2 million on Oracle cloud services in the fiscal year ending May 2024.

The new leadership is aggressively securing top creative talent to drive content volume and quality. Key deals include:

• The Duffer Brothers (creators of Stranger Things) signed an exclusive four-year pact for film, TV, and streaming projects, effective April 2026. The specific financial terms of this deal were not disclosed.
• Director James Mangold struck an overall deal after the studio acquired his motocross heist project, High Side.
• Director Jon M Chu signed a multi-year first-look deal set to begin on January 2, covering film and television.

For international reach, Paramount secured the UK rights for the UEFA Champions League, outbidding TNT Sports. This move forces incumbent partner Sky Italia to increase its offer in Italy, suggesting a competitive dynamic where Paramount+ is leveraging its new premium sports content to drive international distribution agreements, though specific financial details on bundling with Sky or CANAL+ are not public. Separately, four Paramount Africa linear TV channels are confirmed to go dark on DStv (a Canal+ MultiChoice platform) on December 31, 2025, due to carriage negotiation stalemates.

Finance: finalize the Q4 2025 content spend forecast by next Tuesday.

Paramount Global (PARA) - Canvas Business Model: Key Activities

You're looking at the core actions Paramount Global (PARA) is taking post-merger to reshape its business, focusing heavily on digital scale and cost discipline.

Producing premium original content for film, TV, and streaming platforms.

Paramount Global continues to invest in its creative engines, balancing theatrical releases with streaming originals. The company plans to recalibrate its film strategy, aiming for a significant increase in theatrical output starting in 2026.

• Projected theatrical output target beginning in 2026: at least 15 films annually.
• Incremental programming investments planned for 2026 across theatrical and direct-to-consumer: in excess of $1.5 billion.
• Projected total company content spend for 2025: relatively flat compared to 2024.
• Projected content spend in 2024: $15.1 billion.

Scaling the Direct-to-Consumer (DTC) business globally to 79.1 million subscribers.

The scaling of the DTC business, anchored by Paramount+, is a top priority, with the company expecting the entire DTC segment to be profitable for the full 2025 year.

Here's the quick math on the DTC performance as of the third quarter of 2025:

Managing and optimizing the traditional linear TV network portfolio (CBS, MTV).

Optimization involves streamlining operations, including divestitures and winding down regional operations, while capitalizing on high-value linear assets like NFL broadcasts.

• TV Media revenue for Q3 2025: $3.8 billion, a decline of 12% year-over-year.
• Linear TV affiliate and subscription revenues for Q3 2025: $1.74 billion, down 7%.
• Paramount Africa is officially shutting down at the end of December 2025.
• CBS NFL coverage in October 2025 averaged more than 19 million viewers.

Driving enterprise-wide cost transformation for $3 billion in run-rate efficiencies by 2027.

The company aggressively increased its efficiency goal following the merger, with significant savings already realized and more planned for the following year. What this estimate hides is the required one-time investment to achieve these savings.

The cost transformation targets are laid out as follows:

Selling advertising inventory across linear TV, Paramount+, and Pluto TV.

Advertising sales are split between the declining linear business and the growing, but recently softer, DTC ad inventory.

Q3 2025 Advertising Snapshot:

• Linear TV advertising revenue: $1.47 billion, a decline of 12%.
• Direct-to-Consumer (DTC) advertising revenue: $479 million, a slip of 6%.
• The DTC decline was attributed to lower sellout levels for ad-supported Pluto TV.

Paramount Global (PARA) - Canvas Business Model: Key Resources

You're looking at the core assets Paramount Global (PARA) is using to navigate the media transformation post-Skydance merger. These aren't just line items; they are the engines driving the current strategy, so the numbers matter.

The financial foundation as of the end of Q3 2025 shows a specific liquidity and leverage position you need to track.

The intellectual property (IP) library and studio brands represent the deep content moat for Paramount Global. This collection is the source material for both linear and direct-to-consumer (DTC) offerings.

• Iconic Studio Brands: Paramount Pictures, Paramount Television Studios, CBS Studios.
• Flagship Cable Networks: Nickelodeon, MTV, BET, Comedy Central, Showtime.
• The CBS Ecosystem: CBS Television Network, CBS News, CBS Sports, and its portfolio of TV Stations.
• New Additions: Skydance's Animation, Film, Television, Interactive/Games, and Sports divisions.

The global streaming platforms are the stated North Star for growth, with Paramount+ being the primary subscription driver and Pluto TV supporting the ad-supported tier.

Here's the quick math on the DTC performance from Q3 2025:

Exclusive live sports rights are a critical differentiator, anchoring both the linear and streaming businesses. CBS remains a key driver here, especially with its broadcast scale.

• NCAA Rights: Media rights to the NCAA men's basketball tournament games.
• NFL Rights: Continued carriage of NFL programming.
• Golf Majors: Media rights to the Masters and PGA Championship golfing majors.
• International Soccer: U.S. media rights for the UEFA Champions League.

The broadcast network infrastructure, anchored by CBS, provides massive reach, even as linear revenue faces headwinds. CBS is coming off its $\text{17th-consecutive}$ season as the most-watched broadcast network.

The scale of the linear assets in Q3 2025 looked like this:

CBS provides $\text{87.5+}$ hours of regularly scheduled network programming each week, which helps maintain its appointment viewing status.

Paramount Global (PARA) - Canvas Business Model: Value Propositions

You're looking at the core value Paramount Global (PARA) offers its customers as of late 2025, post-Skydance integration. It boils down to a dual-pronged approach: premium, must-have content delivered across a flexible ecosystem.

A single, integrated platform for premium, multi-genre content and live events.

The value proposition centers on the breadth of content accessible through the Direct-to-Consumer (D2C) segment. By the end of the third quarter of 2025, Paramount+ had grown its global subscriber base to 79.1 million, representing a 14 percent increase year-over-year. This scale supports a platform delivering everything from premium scripted series to live sports and news. The D2C division itself generated $2.17 billion in revenue for Q3 2025, up 17 percent from the prior year, signaling strong customer adoption of the combined offering.

Choice between subscription (Paramount+) and free ad-supported (Pluto TV) streaming.

This is where the flexibility really shines. You have the premium, subscription-based Paramount+, which saw its Average Revenue Per User (ARPU) reach approximately $8.40 in Q3 2025, an 11 percent jump. Then there is Pluto TV, the free, ad-supported streaming television (FAST) service, which continues to benefit from strong engagement and monetization, offering an alternative access point to Paramount Global's library. The company has signaled confidence in this dual approach, expecting the D2C business to be profitable in 2025.

Must-watch, high-quality original series and major film franchises.

The content engine is designed to drive both subscription acquisition and theatrical success. Franchise power is a clear value driver. For instance, in Q2 2025, Mission: Impossible - The Final Reckoning delivered the biggest global opening in that franchise's history. The company plans to lean into this IP strategy, forecasting at least 15 films annually starting in 2026, up from a Q3 2025 filmed entertainment revenue of $768 million. Original series like Tulsa King have also set global debut records for Paramount+.

Reliable live news and sports coverage via CBS and its affiliates.

The legacy broadcast assets provide a crucial, reliable draw. While the broader TV Media segment revenue declined 12 percent to $3.8 billion in Q3 2025, driven by lower advertising and affiliate fees, the core value of live programming remains. The NFL on CBS viewership, for example, saw an increase of 5 percent year-over-year in late 2024, with streaming viewership up over 50 percent, showing the synergy between linear and digital delivery for live events.

Global content scale, defintely a competitive advantage in international markets.

The global footprint is substantial, evidenced by the 79.1 million worldwide Paramount+ subscribers as of Q3 2025. This scale allows for content investment that travels well; for example, international Paramount+ subscribers spend nearly 90 percent of their time watching global Hollywood hits, allowing for rightsizing of local content investment. The company is also actively managing its international structure, planning the sale of assets like Telefe and Chilevision as part of its strategic recalibration.

Here's a quick look at the key financial scale underpinning these value propositions as of the latest reported quarter:

Finance: draft 13-week cash view by Friday.

Paramount Global (PARA) - Canvas Business Model: Customer Relationships

You're looking at how Paramount Global, now operating as Paramount Skydance Corporation following the August 2025 merger, manages its direct interactions with viewers and business partners in late 2025. This is a complex mix of automated digital engagement and traditional, high-touch executive relationships.

Automated, personalized recommendations and churn reduction via the DTC platform

The Direct-to-Consumer (DTC) segment, which includes Paramount+, is the company's top priority for growth, with executives expecting the entire DTC business to be profitable for the full 2025 year. Customer retention is actively managed through technological means; for instance, in the first quarter of 2025, churn improved by 130 bps year-over-year. The platform uses data analytics to gain deeper insights into audience preferences, supported by investments in AI and Recommendation Engines. The success of this approach is reflected in global viewing hours, which increased 31% year-over-year across Paramount+ and Pluto TV in Q1 2025. Paramount+ itself represents about 80% of the total D2C business.

Here's a quick look at the key DTC performance metrics leading into late 2025:

What this estimate hides is the volatility; total streaming subscribers dipped to 77.7 million in Q2 2025 due to the expiration of a bulk deal in Europe.

Direct-to-Consumer (DTC) self-service and support for streaming subscribers

The self-service model is foundational for the streaming business, allowing subscribers to manage their accounts directly. Paramount Global is working to streamline this experience by integrating enterprise software; for example, they are integrating Oracle Fusion, a cloud-based system, to improve operational oversight. This backend efficiency helps support the front-end self-service experience. The focus on increasing Average Revenue Per User (ARPU) also implies a direct management of the subscriber's transaction relationship, which includes pricing adjustments; the company announced plans to raise prices for its U.S. subscription video-on-demand (SVOD) services in early 2025. The company is also planning to unify the technology platforms for its three streaming services-Paramount+, Pluto TV, and BET+-next year (2026).

Dedicated sales teams managing long-term affiliate fee contracts with cable providers

The traditional TV Media segment still relies on established, high-touch relationships for carriage agreements. Affiliate and subscription revenues are principally comprised of cable affiliate fees and retransmission fees. These relationships are under pressure, as linear TV's affiliate and subscription revenues were down 7% to $1.74 billion in Q3 2025, driven by a decline in pay TV subscribers. In Q1 2025, this revenue line decreased 9%, which management attributed to both subscriber declines and the impact of recent renewals. The entire TV Media revenue segment, which includes these fees, was $3.8 billion in Q3 2025, a 12% decline year-over-year.

Key components of the TV Media affiliate relationship revenue include:

• Cable affiliate fees for networks like Nickelodeon, MTV, and BET.
• Retransmission fees for owned television stations, including CBS.
• Reverse compensation from television stations affiliated with the CBS Television Network.

High-touch relationships with major advertising agencies and media buyers

Securing large advertising commitments requires direct, high-touch engagement with major agencies and media buyers, especially for premium inventory like live sports. The NFL on CBS viewership increased by 5% in Q3 2024, with streaming viewership up over 50% year-over-year, which provides high-value inventory for these relationships. However, the linear TV advertising market remains soft. In Q3 2025, TV Media advertising revenue fell 12% to $1.47 billion (or $1.465 billion), impacted by an unfavorable comparison to strong presidential advertising in Q3 2024. The DTC advertising side also saw a dip, with ad revenue slipping 6% to $479 million in Q3 2025, due to lower sellout levels on Pluto TV. The overall advertising revenue breakdown for Q3 2025 shows the continued shift away from traditional linear buys.

Here are the advertising revenue figures for recent quarters:

• TV Media Advertising (Q3 2025): $1.47 billion.
• DTC Advertising (Q3 2025): $479 million.
• TV Media Advertising (Q1 2025): $1.879 billion (Excluding Super Bowl LVIII impact).

Finance: draft 13-week cash view by Friday.

Paramount Global (PARA) - Canvas Business Model: Channels

Direct-to-Consumer (DTC) apps: Paramount+ and Pluto TV on all major devices.

Paramount+ ended the third quarter (Q3) of 2025 with 79.1 million subscribers worldwide, marking a 14 percent increase year-over-year. The Average Revenue Per User (ARPU) for Paramount+ reached approximately $8.40 in Q3 2025, up 11 percent from the prior year. The entire Direct-to-Consumer division generated streaming revenue of $2.17 billion in Q3 2025, a 17 percent increase. Paramount+ revenue accounted for more than 80 percent of that total streaming figure. Pluto TV, the free, ad-supported service, contributed to the growth in streaming advertising revenue. The last publicly stated Monthly Active User (MAU) count for Pluto TV globally was 72 million.

Linear TV networks: CBS broadcast and cable networks (e.g., Comedy Central, BET).

The TV Media segment, which includes CBS and cable networks, saw its revenue decline in Q3 2025.

• TV Media revenue for Q3 2025 was $3.8 billion.
• TV advertising revenue for Q3 2025 was $1.465 billion.
• This segment's performance was impacted by industry-wide declines in advertising and affiliate fees.

Theatrical distribution via Paramount Pictures for global box office releases.

Revenue from the Filmed Entertainment segment, which includes Paramount Pictures, totaled $768 million in Q3 2025, a 4 percent decrease from the year prior. Paramount Pictures plans to recalibrate its film strategy and expand theatrical output to at least 15 films annually starting in 2026.

Third-party digital storefronts like Amazon Prime Video Channels and Apple TV.

This distribution method is embedded within the overall Direct-to-Consumer revenue stream, contributing to the $2.17 billion in streaming revenue reported for Q3 2025.

Affiliate and carriage deals with cable, satellite, and virtual MVPDs.

Affiliate and subscription revenue within the TV Media segment declined in Q3 2025.

Here's a quick look at some key Q3 2025 channel-related financial metrics:

The company ended Q3 2025 with $3.3 billion in cash and $13.6 billion in debt.

Paramount Global (PARA) - Canvas Business Model: Customer Segments

You're looking at the core audience groups Paramount Global (PARA) serves as of late 2025, post-Skydance merger. It's a mix of legacy media consumers and the new digital-first crowd, and the numbers show where the focus is shifting.

The streaming audience is the clear growth engine. By the third quarter of 2025, Paramount Global had reached 79.1 million global streaming subscribers across its platforms, primarily Paramount+. This represented a net addition of 1.4 million subscribers during that quarter alone. Still, the direct-to-consumer (DTC) division saw its revenue climb 17% year-over-year in Q3 2025 to $2.17 billion. The average revenue per user (ARPU) for the streaming service settled around $8.40 in Q3 2025. Honestly, the company expects this DTC business to be profitable in 2025. This focus is driving strategy, with plans to raise Paramount+ prices in the US starting January 15, 2026, with the ad-supported Essential plan moving to $8.99 monthly and the ad-free Premium plan to $13.99 monthly.

The traditional pay-TV segment, while shrinking, still provides significant, though declining, revenue. This group consists of those paying affiliate fees via cable and satellite bundles for carriage of networks like CBS, MTV, and Nickelodeon. Affiliate and subscription revenue for the TV Media segment in Q3 2025 was $1.74 billion, marking a 7% decline year-over-year. This decline reflects industry-wide cord-cutting and Paramount's stated strategy of reducing low-return bundles.

Global advertisers are a crucial segment, split between the legacy linear footprint and the growing digital inventory. Linear TV advertising revenue in Q3 2025 was $1.47 billion, down 12% from the prior year. However, digital reach is being quantified like never before. Paramount Global executives noted that streaming accounted for 30% of upfront sales in the latest cycle. The company is using tools like Mastercard Media Measurement to prove value, analyzing 13 billion impressions, which helped drive $1 billion in incremental advertising revenue and showed a 3.5% average spend lift for participating advertisers.

Theatrical moviegoers remain a key segment, though the studio is recalibrating its approach. The Filmed Entertainment segment generated $768 million in revenue in Q3 2025, a 4% drop from the year prior, as the 2025 slate underperformed expectations. Major releases like Mission: Impossible - The Final Reckoning provided a boost in Q2 2025, where theatrical revenue jumped 84%. Looking ahead, Paramount plans to increase its theatrical output to at least 15 films annually starting in 2026.

Finally, content buyers represent an important, though less emphasized, segment for monetization. This includes third parties acquiring licensing rights for Paramount's film and television programming. Overall content licensing revenue for Q2 2025 was $690 million, showing a 2% increase year-over-year. For the full year 2024, licensing and other revenues totaled $4.952 billion.

Here's a quick look at the key revenue drivers for these segments in Q3 2025, where available:

If you're tracking the shift, streaming subscription revenue was up 22% in Q2 2025, while linear advertising was down 4% in the same period. Finance: draft 13-week cash view by Friday.

Paramount Global (PARA) - Canvas Business Model: Cost Structure

Content production and acquisition costs remain the largest expense category, evidenced by the expectation of adj. OIBDA losses in Q4 2025 for the Direct-to-Consumer (DTC) segment due to seasonally-weighted content costs. Paramount Skydance Corporation plans for more than $\$1.5$ billion in incremental programming investment in 2026, covering UFC, originals, third-party catalog licensing, and ramping up the film slate.

Technology and distribution costs are embedded within the scaling of the global streaming platform, which is the company's "North Star" business. The DTC division generated $\$2.17$ billion in revenue in Q3 2025.

Restructuring charges are a significant, near-term cost. Paramount expects to recognize a restructuring charge of approximately $\$500$ million in Q4 2025 as part of its realignment and transformation. The company also anticipates transformation costs of several hundred million in Q4 2025.

The broader cost-cutting effort is substantial, targeting long-term efficiency:

Linear TV network operating expenses and affiliate fee payments are under pressure as the business pivots away from linear. For Q3 2025, the TV Media segment saw advertising revenue fall $12\%$ year-over-year to $\$1.47$ billion. In Q4 2024, affiliate and subscription revenues reflected declines of approximately $3\%$ from linear affiliate fees.

Sales, General and Administrative (SG&A) expenses are subject to efficiency cuts, following prior reductions. For the three months ended March 31, 2025, SG&A expenses were $\$1,543$ million, which was a $7\%$ decrease from $\$1,662$ million in the same period of 2024. This decrease reflected lower compensation costs following a 2024 restructuring and lower marketing costs.

Key SG&A components include:

• Costs incurred for advertising and marketing for linear networks and streaming services.
• Research, occupancy, and professional service fees.
• Back office support, including employee compensation and technology.

Paramount Global (PARA) - Canvas Business Model: Revenue Streams

You're looking at the engine room of Paramount Global (PARA) post-Skydance merger, specifically how the cash flows in as of late 2025. It's a story of digital strength battling linear decline, but the numbers tell you exactly where the focus is.

DTC Subscription Revenue: Paramount+ subscription fees is the clear growth driver now. For the third quarter of 2025, the entire Direct-to-Consumer (DTC) division, which houses Paramount+ and Pluto TV, brought in $2.17 billion, marking a 17% year-over-year increase. Honestly, Paramount+ itself accounts for over 80% of that total DTC revenue. The company expects its DTC streaming business to achieve full-year profitability in 2025.

Advertising Revenue is split between the legacy linear TV business and the digital platforms. Linear TV advertising revenue specifically saw a 12% year-over-year decline, landing at $1.47 billion for Q3 2025. This drop was attributed partly to an unfavorable comparison against strong political advertising in the third quarter of 2024. On the digital side, DTC advertising revenue slipped 6% to $479 million.

Affiliate and Subscription Fees, which primarily come from the traditional TV Media segment (cable and satellite providers), are feeling the ecosystem pressure. This revenue stream declined 7% year-over-year, totaling $1.74 billion in Q3 2025. Cord-cutting definitely contributes to this headwind, as you'd expect.

Content Licensing revenue, which falls under the TV Media segment's Licensing and Other category, saw a significant drop in Q3 2025. One report noted a 22% decline due to the timing of content delivery. This is a tricky area where timing of deals really moves the needle quarter-to-quarter.

Theatrical Revenue is captured within the broader Filmed Entertainment segment. For Q3 2025, revenue from this segment, which includes Paramount Pictures film releases, was $768 million, down 4% from the prior year. The company acknowledged its 2025 theatrical slate underperformed expectations but plans to ramp up output to at least 15 films annually starting in 2026.

Here's a quick math snapshot of the key Q3 2025 revenue components we just discussed:

The strategic shift is clear when you look at the growth rates. The company is definitely prioritizing the DTC side, which is showing double-digit growth, while the traditional linear businesses face structural declines. You can see the focus in their subscriber metrics, too:

• Paramount+ ended September with 79.1 million subscribers worldwide.
• Subscriber count increased by 1.4 million during the quarter.
• Average Revenue Per User (ARPU) for DTC grew 11% to approximately $8.40.

Finance: draft 13-week cash view by Friday.