Paramount Takes US$6 Bln Write-down Amid US Cable TV Decline

WASHINGTON, Aug 9 (Bernama-dpa) -- Entertainment giant Paramount on Thursday announced a US$6 billion write-down on its TV channels, citing the ongoing decline of US cable TV, shrinking profits, and a shift towards streaming. 

The company, which owns channels like MTV and Nickelodeon, reported falling profit expectations and subscriber numbers in the cable sector, reported German news agency dpa.

In contrast, Paramount's streaming division saw a profit of US$26 million in the second quarter, despite a drop in subscribers. Group revenue fell by 11 per cent to US$6.8 billion, leading to a net loss of US$5.4 billion for the quarter.

Paramount, which owns MTV and Nickelodeon, among other channels, pointed to falling profit expectations and subscriber numbers in US cable TV as reasons for the write-down, which amounts to some US$6 billion. 

On Wednesday, Paramount's rival company Warner Bros Discovery wrote off US$9.1 billion on its TV channels, including CNN and Discovery.

US cable TV used to be a reliable source of income for Hollywood. However, viewers and advertisers are increasingly moving to streaming platforms.

Paramount's adjusted operating profit reached US$26 million in the second quarter in the streaming division, compared to a loss of US$424 million a year earlier. 

The number of subscribers to the Paramount+ streaming service dropped by 2.8 million to 68 million within three months, mainly due to the end of a bundle deal in South Korea.

Group revenue fell by 11 per cent to US$6.8 billion due to US cable TV business declines, disappointing analysts who had expected more. 

The company reported a bottom line loss of US$5.4 billion, compared to a loss of almost US$300 million in the same quarter a year earlier.

--BERNAMA-dpa