Paramount adds 2M streaming subs in Q2, earnings still dip as cord-cutting continues

Despite adding millions of subscribers to Paramount+, David Ellison’s Paramount Skydance saw its revenue dip in the second quarter compared to the same period a year ago.

According to a report by Brian Steinberg in Variety, Paramount+ added 2 million subscribers in Q2, largely on the back of its exclusive broadcast deal with UFC in the United States. As such, revenue for Paramount’s streaming business rose nine percent to $2.5 billion, with revenue for Paramount+ alone seeing a 16 percent surge. Subscriber growth was also attributed to the FIFA World Cup, as Paramount+ held rights to the event in certain Latin American countries.

But despite the positive news on the streaming front, Paramount’s net earnings fell to $41 million, down from $57 million in Q2 2025.

The decline, as one would expect, was largely due to the continuation of cord-cutting and the erosion of the pay-TV bundle. Revenue from Paramount’s television operations fell nine percent, from $3.45 billion to $3.12 billion, in the second quarter. That downturn includes a six percent decline in distribution fees, the per-subscriber payments Paramount earns from cable and satellite providers like DirecTV and Comcast. Those fees remain the lifeblood of companies like Paramount despite their concerted push into streaming.

Paramount’s latest financial report coincided with a major development in its ongoing regulatory effort to finalize a merger with Warner Bros. Discovery. Earlier this week, the judge overseeing a case brought by 12 state attorneys general to halt the transaction scheduled a trial for March 2-19, which could well decide the fate of the company’s bold purchase. In just under two months, Paramount will begin paying Warner Bros. Discovery shareholders a daily ticking fee amounting to $650 million per quarter while the transaction remains in limbo.

Right now, dragging that merger over the finish line is priority number one for Paramount. The company would owe Warner Bros. Discovery a $7 billion fee if the deal falls apart.

While dwindling pay-TV revenue remains a dire concern, both for Paramount and a future combined entity, the streaming gains are at least somewhat of a silver lining. Ellison noted during the company’s earnings call that live sports will continue to play a key role in Paramount’s future, describing the company “as a buyer of sports rights.”