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

You're looking at Paramount Global right now, and honestly, it's a fascinating, high-stakes pivot point, especially after the Skydance integration. As an analyst who's seen a few media transformations, the key question is how they convert that premium content engine-backed by iconic brands-into sustainable cash flow while managing $13.6 billion in debt as of Q3 2025. This Business Model Canvas cuts through the noise, showing exactly how they're balancing the 79.1 million global streaming subscribers against the legacy linear business, all while chasing that domestic profitability target for Paramount+ after posting a Q3 2025 net loss of $257 million. Let's break down the nine blocks to see if the blueprint for their $6.7 billion Q3 revenue stream is sound.

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

You're looking at the core relationships Paramount Global, now operating as Paramount, a Skydance Corporation, maintains to fuel its content engine and distribution reach as of late 2025. Honestly, the biggest shift this year was solidifying the Skydance merger, which fundamentally changed the partnership landscape.

Skydance Media for Integrated Content Production and IP Development (post-merger)

The definitive agreement to merge with Skydance Media closed on August 7, 2025, creating a new entity valued at an enterprise value of approximately $28 billion. This partnership is central to the new strategy, combining Paramount's library with Skydance's production expertise. Skydance's investor group, led by the Ellison Family and RedBird Capital Partners, invested up to $6 billion in the transaction. A key promise from the new ownership structure, which now trades under the ticker PSKY, was to find $2 billion in cost savings. The integration aims to supercharge streaming by leveraging Skydance's content pipeline and scaling production workflows, including deploying AI to help cut production costs.

Major Cable and Satellite Providers for Linear TV Distribution

Paramount Global still relies on traditional distributors for carriage fees across its linear networks like CBS, MTV, and Nickelodeon. However, this revenue stream is under pressure. Affiliate and subscription revenue within the TV Media segment decreased by 9% in Q1 2025, driven principally by subscriber declines and recent renewal impacts. To be fair, linear networks still generated nearly two times the revenue of the streaming platforms in Q2 2025, despite the overall TV Media revenue dropping 6% year-over-year in that quarter to $4.01 billion.

Global Tech Platforms (e.g., Amazon, Apple) for DTC App Distribution

Distribution through major tech platforms is a critical pipeline for Paramount+ subscriber acquisition. In Q3 2025, 13% of Paramount+'s new subscribers came directly through Prime Video Channels. This bundling strategy helps offset churn, as Paramount+ is on track for projected full-year U.S. profitability in 2025. The Direct-to-Consumer (DTC) segment, which includes Paramount+, saw its revenue rise by 15% to $2.16 billion in Q2 2025.

Sports Leagues (e.g., NFL, UEFA) for Live Content Rights

Live sports, particularly the NFL on CBS and Paramount+, remain a significant driver for new subscriber acquisition and engagement. The NFL programming helped Paramount+ add 10 million new subscribers in the year leading up to Q1 2025. Furthermore, Paramount Skydance secured a major international rights deal: they won the auction for most UEFA Champions League matches in the UK from 2027 to 2031 with a bid 'considerably higher than the £1bn currently paid by TNT'.

Third-Party Content Licensors for Revenue Generation

Content licensing remains a growth area for Paramount, especially as the new management emphasizes capitalizing on the IP library. In Q1 2025, licensing and other revenue increased by 6%, primarily due to higher home entertainment revenue from recent theatrical releases. Content licensing was explicitly called a growth business by co-CEO Chris McCarthy in May 2025.

Here's a quick look at the scale of the DTC business these partnerships support as of mid-2025:

The success of these partnerships is directly tied to the DTC segment's financial health. You can see the DTC Adjusted OIBDA (operating loss before depreciation and amortization) improved by $177 million year-over-year in Q1 2025. Also, Pluto TV, the FAST service, reached 83 million global Monthly Active Users (MAUs) in Q2 2025, representing another key distribution partnership for ad revenue.

The core relationships driving the business model now include:

• Securing content pipeline via the Skydance merger, valued at $28 billion enterprise value.
• Maintaining carriage fees from cable/satellite providers, despite affiliate revenue falling 9% in Q1 2025.
• Driving 13% of new Q3 2025 subscribers via Prime Video Channels.
• Investing heavily in sports rights, like the UEFA Champions League deal exceeding £1bn.
• Generating growth from licensing, which saw a 6% revenue increase in Q1 2025.

Finance: review the Q3 2025 ARPU (Average Revenue Per User) impact from the Prime Video Channel cohort by next Tuesday.

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

You're analyzing the core actions Paramount Global (PARAA) is taking post-merger, focusing on the hard numbers that define their current operational strategy as of late 2025. It's all about execution now.

Producing premium, franchise-driven film and television content.

Paramount Global is heavily leaning on established intellectual property to drive value across its ecosystem. The success of these tentpoles is immediately leveraged into the DTC offering.

For the first quarter of 2025, the success of releases like Sonic the Hedgehog 3 and Gladiator II was noted. Gladiator II specifically earned the distinction as the most-viewed film ever on Paramount+. Furthermore, Paramount+ secured the second most Top 10 SVOD Originals for the first quarter of 2025. The company signaled a commitment to content investment, planning to put over $1.5 billion in incremental programming investment in 2026, covering UFC rights, originals, and ramping up the film slate.

Managing and scaling the global Direct-to-Consumer (DTC) platforms.

The DTC segment, which includes Paramount+, BET+, and Pluto TV, is the stated North Star business. Management expects the entire DTC streaming business to achieve full-year 2025 profitability. This is being driven by subscriber growth, engagement, and price increases.

By the end of September 2025 (Q3), Paramount+ reported 79.1 million global subscribers, adding 1.4 million net additions in that quarter alone. This followed a Q2 period where the service ended with 77.7 million subscribers, having lost 1.3 million in that quarter. The focus on monetization is clear, as Global ARPU (Average Revenue Per User) for streaming grew 9% year-over-year in Q2 2025.

Here's the quick math on the DTC segment's recent financial performance:

• DTC Revenue (Q3 2025): $2.17 billion, up 17% year-over-year.
• Paramount+ Revenue Growth (Q2 2025): Surged 23% year-over-year.
• DTC Adjusted Operating Income (Q2 2025): Improved to $157 million, up $131 million year-over-year.
• Global Viewing Hours (Q2 2025): Increased 31% year-over-year across Paramount+ and Pluto TV.

Selling advertising inventory across linear and digital channels.

Advertising revenue is heavily impacted by the comparison against major live events, like Super Bowl LVIII in Q1 2024. The traditional TV Media segment continues to see revenue declines due to cord-cutting.

In Q3 2025, total advertising revenue was down 12% year-over-year, landing at $1.465 billion. For the linear side, TV Media revenue in Q3 2025 was $3.8 billion, a 12% drop YoY. Still, the core broadcast asset remains significant; the CBS Television Network averages over 5 million prime-time viewers.

The digital advertising side is also seeing pressure; DTC advertising revenue fell 4% in Q2 2025 as weaker cost-per-thousand ad rates offset rising connected-TV inventory.

Executing the $3 billion in planned cost efficiencies and restructuring.

Following the Skydance merger completion in August 2025, Paramount Global announced an expansion of its cost-cutting initiative. The new, aggressive target for projected cost reductions is $3 billion, up from the prior target of $2 billion. This deep restructuring involves an additional 1,600 layoffs, focusing on international TV station divestitures and reductions among senior executives. The company is targeting a 15% reduction in global staff overall as part of this pivot away from linear TV.

This follows earlier efforts; for instance, a round of layoffs earlier in 2025 cut 3.5% of the workforce, which came after a prior effort to trim costs by $500 million last year.

Distributing content theatrically via Paramount Pictures.

Theatrical distribution remains a key activity, feeding content into the DTC pipeline. In Q1 2025, Theatrical revenue was $148 million, a 3% decrease year-over-year, though overall Filmed Entertainment revenue was up 4% to $627 million.

If onboarding takes 14+ days, churn risk rises. The focus is clearly on theatrical hits that have proven value on the streaming service afterward.

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

You're looking at the core assets of Paramount Skydance Corporation, which is what Paramount Global became after the August 2025 merger with Skydance Media. These resources are what the entire business model is built upon, so let's lay out the hard numbers and tangible assets.

The content library and the brands that own it are defintely the bedrock. This isn't just about volume; it's about ownership of intellectual property that spans decades. The portfolio now unites legendary brands under the Paramount Skydance umbrella.

• Iconic brands now include CBS, Paramount Pictures, Nickelodeon, MTV, and BET.
• The portfolio also incorporates Skydance's Animation, Film, Television, Interactive/Games, and Sports divisions.
• Paramount Pictures' library features classics like Titanic, Forrest Gump, and The Godfather, plus franchises such as Mission: Impossible and Transformers.
• The combined brands are reported as #1 in key U.S. target demographics, including total audience, kids, adults, African-Americans, and Hispanics.

The direct-to-consumer (DTC) business is clearly the top priority for the new leadership. Scaling this globally is where the immediate focus is, translating that content library into recurring revenue. The latest figures show solid, though hard-fought, growth in this area.

Here are the key subscriber and financial metrics as of the third quarter of 2025:

The CBS broadcast network remains a top-tier asset for linear distribution, a crucial piece of the traditional media puzzle. Even with viewership declines across linear TV, its reach is significant. As of the first quarter of 2025, CBS was poised to be the most-watched network in U.S. primetime for the 17th consecutive season.

The integration with Skydance brings a realigned structure and new leadership to manage the creative and production infrastructure. The new Paramount Skydance Corporation is split into three categories: Studios, direct-to-consumer, and TV media. This structure is designed to foster seamless collaboration between creative and technical talent to maximize the value of the combined storytelling assets.

However, you can't discuss the resources without addressing the balance sheet liabilities that come with the company. Managing this debt load is a critical operational constraint that dictates strategic flexibility.

The financial structure as of Q3 2025 shows the following:

• Gross Debt: $13.6 billion.
• Cash and Cash Equivalents: $3.3 billion.
• The company expects to achieve investment grade debt metrics by the end of 2027.

Finance: draft 13-week cash view by Friday.

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

A single, scaled streaming service (Paramount+) combining premium content and live events.

• Global Paramount+ subscribers reached 79.1 million as of Q3 2025.
• Direct-to-Consumer revenue for Q3 2025 was $2.17 billion, marking a 17% year-over-year increase.
• Global Average Revenue Per User (ARPU) for streaming services was approximately $8.40 in Q3 2025, up 11% year-over-year.
• The ad-supported tier of Paramount+ is projected to account for 58% of its viewers in 2025.

Free, ad-supported streaming via Pluto TV for budget-conscious viewers.

• Pluto TV boasts over 80 million monthly active users globally.
• Free, ad-supported television services, including Pluto TV, generated $4.9 billion in revenue in 2024.

Must-have live content, including NFL games and breaking news via CBS.

• NFL on CBS viewership saw an increase of 5%, with streaming viewership up over 50% year-over-year (based on prior period data).

High-quality theatrical releases that feed the streaming service flywheel.

Diverse portfolio appealing to multiple demographics (Nickelodeon, BET, Showtime).

• The TV Media segment, which includes Nickelodeon and CBS, generated $3.8 billion in revenue in Q3 2025.
• Paramount+ includes content from Showtime, with the premium tier contributing to an increased average revenue per user.

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

You're managing a massive direct-to-consumer (D2C) operation, so the relationship with the subscriber has to be as frictionless as possible. For Paramount+ subscribers, the core interaction is designed to be automated and self-service, which is crucial when you're managing a base that hit 79 million global subscribers at the end of the first quarter of 2025.

If a customer signs up directly through the Paramount+ website, they manage everything-upgrades, downgrades, and payment method updates-by navigating to their account settings at www.paramountplus.com/account. If they signed up via a third party, like Apple, Google Play, or Roku, the management shifts to those platform stores, which is a necessary complexity in the modern distribution landscape.

The focus on keeping subscribers happy is clear in the retention metrics. Paramount Global saw churn improve by 130 basis points year-over-year in Q1 2025. This improvement is directly tied to personalized content recommendations, which help keep users engaged. Engagement itself is up; global watch time per user on Paramount+ increased by 17% year-over-year in Q1 2025. Also, global viewing hours across both Paramount+ and Pluto TV surged by 31% in that same quarter.

Here's a quick look at how those D2C relationships translated to financials in Q1 2025:

For the advertising and affiliate side, the relationship is much more high-touch. You're not dealing with an automated portal; you're dealing with dedicated sales teams. Paramount Global has been actively structuring these teams, especially internationally, to provide integrated solutions across its ecosystem of free-to-air networks, pay TV channels, and streaming platforms. For instance, the company appointed new leadership for International Ad Sales in September 2025 and for UK Sponsorships in June 2025, showing a commitment to dedicated, senior-level management for these major partners. These teams work to seamlessly place brands into programming using internal creative groups like Paramount Brand Studios.

Even with automation, technical and billing issues require human intervention. Paramount Global maintains customer support channels to handle these necessary escalations. The goal is to keep the friction low so that engagement metrics, like the 17% year-over-year increase in watch time per user in Q1 2025, remain strong. If onboarding takes 14+ days, churn risk rises, so support efficiency is key.

The overall health of the D2C relationship management is reflected in the profitability trend. The DTC Adjusted OIBDA (Operating Income Before Interest, Taxes, Depreciation, and Amortization) improved by $177 million year-over-year in Q1 2025. By Q2 2025, the segment posted an adjusted OIBDA of $157 million, a massive jump from just $26 million in Q2 2024.

Here are the key relationship-driving engagement statistics from Q1 2025:

• Paramount+ ranked as a top three SVoD service in Original Series hours watched domestically.
• Global viewing hours across Paramount+ and Pluto TV increased 31% year-over-year.
• The service had 19 of the top ten streaming originals in Q1, including 'Landman' and 'Yellowjackets' premieres.
• The company remains on track to reach domestic profitability for Paramount+ in 2025.

Finance: draft 13-week cash view by Friday.

Paramount Global (PARAA) - Canvas Business Model: Channels

You're looking at how Paramount Global (Paramount Skydance Corporation as of August 2025) gets its content into the hands of viewers and customers. It's a mix of old-school reach and new-school delivery, and the numbers from the third quarter of 2025 really show that tension.

Direct-to-Consumer (DTC) apps: Paramount+ (SVOD) and Pluto TV (FAST)

This is the growth engine, honestly. The DTC segment, which bundles Paramount+ (Subscription Video on Demand) and Pluto TV (Free Ad-supported Streaming Television), posted a strong 17 percent year-over-year revenue increase in Q3 2025, hitting $2.17 billion. Paramount+ is the heavy lifter here, with its revenue surging 24 percent in the quarter. You see the subscriber base expanding, too; they ended Q3 2025 with 79.1 million global subscribers, adding 1.4 million net additions during the quarter. That's up from 79 million at the end of Q1 2025. The average revenue per user (ARPU) for streaming also climbed 11 percent year-over-year to approximately $8.40 in Q3. Pluto TV keeps pace with record global viewing hours, supporting the ad revenue side of the DTC equation. It's worth noting that Paramount expects the DTC business to be profitable for the full year 2025, having posted an adjusted OIBDA of $340 million in Q3 alone, a significant jump from $49 million a year ago. They are phasing out free trialers, which totaled 1.2 million at the end of Q3.

Here's a quick look at the DTC performance snapshot:

Traditional TV Media: CBS broadcast network and owned cable networks

The linear side is definitely facing headwinds, but it still moves a massive audience. The TV Media segment brought in $3.8 billion in revenue for Q3 2025, which was down 12 percent year-over-year. Advertising revenue within that segment was $1.465 billion, also down 12 percent, reflecting the softer linear ad market. Still, the CBS broadcast network remains a powerhouse, holding its position as the most-watched network in primetime for the 17th consecutive season. The owned cable networks-Nickelodeon, MTV, Comedy Central, and others-are part of this revenue stream, though they are feeling the direct impact of cord-cutting.

Theatrical box office distribution via Paramount Pictures

The theatrical channel is all about tentpole releases, and 2025 saw a recalibration after major 2024/early 2025 hits. The Filmed Entertainment segment, which houses Paramount Pictures, generated $768 million in revenue for Q3 2025. This was down 4 percent year-over-year on a comparable basis, as the theatrical slate underperformed expectations for the quarter. The company plans to address this by expanding theatrical output to at least 15 films annually starting in 2026. For context, in Q1 2025, Theatrical revenue specifically was $148 million, benefiting from the tail end of films like Gladiator II.

Affiliate agreements with MVPDs (cable/satellite) and vMVPDs (e.g., YouTube TV)

This is the traditional distribution backbone, where Paramount collects fees for carrying its linear channels. Q3 2025 saw TV Affiliate revenue come in at $1.74 billion. That number was down 7 percent year-over-year, which management directly tied to the ongoing decline in pay TV subscriber volume. You see this channel shrinking as more households drop traditional cable and satellite packages.

Content licensing to third-party platforms globally

Licensing content to other services globally provides a crucial cash flow component. In Q3 2025, the Licensing and Other revenue line saw a 22 percent year-over-year decline, which the company attributed to the timing of content delivery schedules. To give you a sense of the scale when timing is favorable, total content licensing revenue in Q2 2025 was $690 million. This channel is cyclical, depending heavily on when major library deals or exclusive content windows close.

You should track the Q4 2025 results closely to see if the expected acceleration in DTC revenue for 2026, as projected by the new leadership, begins to materialize against these Q3 linear declines. Finance: draft 13-week cash view by Friday.

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

Global streaming subscribers seeking premium, exclusive content:

• Global Paramount+ subscribers totaled 79 million as of Q1 2025.
• Paramount+ added 1.5 million net subscribers in Q1 2025.
• The global subscriber base dipped to 77.7 million by the end of Q2 2025.
• Subscription revenue for the Direct-to-Consumer (DTC) segment jumped approximately 23% year-over-year in Q2 2025.

Ad-tolerant viewers utilizing the free Pluto TV service:

• Pluto TV reported global Monthly Active Users (MAUs) reaching 83 million in Q2 2025.
• Global viewing hours across Paramount+ and Pluto TV surged 31% year-over-year in Q1 2025.
• Pluto TV was the most popular free ad-supported streaming television (FAST) service in Canada as of December 2024.

Traditional linear TV households paying for cable/satellite bundles:

• CBS is on track to be the most-watched network in U.S. primetime for the 17th consecutive season.
• Affiliate and subscription revenue for TV Media dipped 9% in Q1 2025.
• Global spending on linear TV ads is forecast at $143.9 billion for 2025.
• Linear TV now represents just 12.4% of total global ad spend.

Global advertisers seeking mass reach across linear and digital platforms:

The advertising landscape shows a clear shift in spend allocation across platforms.

• Global Connected TV (CTV) spend is forecast to reach $39.9 billion in 2025.
• 56% of marketers plan to boost OTT/CTV budgets in 2026.

International audiences for localized content and global streaming expansion:

• Paramount+ saw subscriber decline of 1.3 million in Q2 2025, attributed to a bulk deal expiration in Europe.
• The company undertook a 3.5% U.S. workforce reduction in 2025 to optimize margins amid global expansion.
• Pluto TV is available in the Americas and Europe.

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

The Cost Structure for Paramount Global is heavily influenced by the significant capital required to fuel its content engine and the ongoing integration and transformation following the Skydance merger. You're looking at a business model where large, upfront investments are necessary to maintain relevance in the competitive media landscape.

High fixed costs related to content production and acquisition remain a primary driver of expenditure. While specific content cost figures for Q3 2025 aren't explicitly broken out in the same line item as revenue, the company expects adjusted operating income (adj. OIBDA) losses in Q4 2025 due to seasonally-weighted content costs in the Direct-to-Consumer (DTC) segment. This signals that content spend is a major, variable, yet substantial, fixed-like cost component. The company is planning to increase its investment in content moving forward, with a stated goal of investing $1.5 billion in content as part of the new strategy.

Significant technology and marketing spend for DTC platform growth is another critical area. The DTC division, which includes Paramount+, saw revenue increase 17 percent to $2.17 billion in Q3 2025. The post-close period of Q3 2025 saw the DTC segment achieve an adj. OIBDA of $235 million, showing improved efficiency, but this is balanced against the need to continue scaling the platform globally.

Linear TV distribution and affiliate fee expenses are tied to the legacy business, which continues to face headwinds. The TV Media segment generated $3.8 billion in revenue in Q3 2025. This revenue is directly impacted by the costs associated with maintaining distribution agreements and the associated affiliate fees, which saw revenue decline 7 percent year-over-year to $1.74 billion in the quarter.

Restructuring and merger-related charges have directly impacted recent profitability. Paramount Global posted a net loss of $257 million for the third quarter of 2025, which was explicitly based on merger-related expenses and restructuring costs. Furthermore, the company anticipates a restructuring charge of $500 million in the fourth quarter of 2025 related to its realignment and transformation efforts. The overall cost-cutting initiative, following the Skydance merger, has increased the efficiency target to at least $3 billion in run-rate savings by 2027, up from a prior $2 billion target.

The burden of financing operations is reflected in the substantial interest expense on debt. Paramount ended Q3 2025 with gross debt of $13.6 billion. While the Q3 2025 interest expense is not explicitly stated, the interest expense on debt for the fiscal quarter ending in June of 2025 (Q2 2025) was $214 million.

Here's a quick look at the key financial figures impacting the cost side of the equation as of late 2025:

The cost structure is clearly undergoing a major overhaul, aiming to shed legacy expenses while funding the digital transition. You can see the impact of this in the segment results:

• DTC adj. OIBDA margin: 12 percent (pre-close) and 18 percent (post-close) in Q3 2025.
• TV Media adj. OIBDA margin: 20 percent (pre-close) and 23 percent (post-close) in Q3 2025.
• TV Affiliate Revenue: $1.74 billion in Q3 2025.
• TV Advertising Revenue: $1.465 billion in Q3 2025.

The company is definitely making aggressive moves to right-size its operating expenses. Finance: draft 13-week cash view by Friday.

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

You're looking at the core ways Paramount Global brings in cash as of late 2025, post-Skydance merger. It's a mix of legacy media cash flow and aggressive streaming investment.

Subscription revenue from Paramount+ is definitely the primary growth driver you need to watch. The Direct-to-Consumer (DTC) division, which houses Paramount+, saw its revenue increase by 17 percent year-over-year on a pro forma basis in Q3 2025. Paramount+ itself drove a significant portion of this, with its revenue growing 24 percent to reach $1.77 billion for the quarter. The global subscriber base reached 79.1 million worldwide by the end of Q3 2025, up 10 percent year-over-year, with Average Revenue Per User (ARPU) also growing by 11 percent.

Advertising revenue from TV Media and Pluto TV is still a major component, though facing headwinds. The company reported total revenue of $6.7 billion for the third quarter of 2025, which was flat compared to the prior year on a pro forma basis. Within the TV Media segment, advertising revenue specifically fell 12 percent year-over-year to $1.465 billion in Q3 2025. Pluto TV's performance is bundled into the DTC advertising figures, which saw growth driven by both it and Paramount+.

Affiliate fees from cable and satellite distributors represent a declining segment you must account for. This revenue stream, part of the TV Media segment, was reported at $1.74 billion in Q3 2025, marking a 7 percent decline year-over-year, directly attributable to ongoing pay TV subscriber volume loss.

Theatrical box office and content licensing revenue from Filmed Entertainment shows the impact of the Skydance integration. Filmed Entertainment pro forma revenue increased 30 percent year-over-year in Q3 2025, largely due to the consolidation of Skydance licensing and other revenue. The company plans to recalibrate its film strategy, aiming for an output of at least 15 films annually starting in 2026, up from about eight films per year previously.

Management has been clear on the streaming focus: they expect Paramount+ to achieve domestic profitability by the end of 2025. On a full-year basis, the entire DTC segment is expected to be profitable in 2025, with profitability growth anticipated in 2026.

Here's a quick look at the Q3 2025 segment revenue breakdown:

The key takeaways on the revenue mix are:

• Paramount+ global subscribers hit 79.1 million as of end of Q3 2025.
• DTC segment posted a profit of $340 million in Q3 2025.
• TV Media segment revenue declined 12 percent to $3.8 billion in Q3 2025.
• The company is targeting at least $3 billion in run-rate efficiencies by 2027.
• Expected 2026 total revenue forecast is $30 billion.

Finance: draft 13-week cash view by Friday.