Paramount Global, the owner of CBS network and streaming services like Paramount+ and Nickelodeon, reported a 6% decline in revenue during the fourth quarter. The company faced challenges in its TV and movie operations, with a 31% drop in film revenues and a decrease in advertising sales, content licensing fees, and affiliate revenues. The effects of Hollywood strikes from the previous year impacted these operations significantly.

In efforts to cut costs, Paramount Global is planning layoffs and restructuring, expecting a $1 billion charge in the first quarter. The recent layoff of about 800 employees is part of this restructuring, with $200 million tied to write-downs of programming and international business changes. CEO Bob Bakish highlighted the focus on making the streaming business profitable, aiming for Paramount+ to be profitable in the U.S. by the end of 2025.

In the fourth quarter, Paramount+ gained 4.1 million net additions, reaching a total of 67.5 million subscribers. However, traditional revenue streams like TV networks saw declines with a 15% drop in advertising and reductions in affiliate fees and licensing. The company is still navigating through a decrease in cable subscribers and challenges in the global advertising market.

During an investor call, Bakish stressed the importance of profitability in streaming and controlling production costs for movies and TV. Paramount Global is shifting towards more cost-effective program formats and distributing content strategically across its platforms. For instance, the series "Tulsa King" is set to air on CBS network before launching its second season on Paramount+.

As the company works on enhancing its streaming business's profitability and adapting to the changing media landscape, executives emphasize maximizing returns on content investments and scaling streaming operations. The goal is to capitalize on early momentum and align with the overarching strategy and assets of Paramount Global.