A new report by Parrot Analytics examines Paramount+’s recent growth and how Paramount Global is coping with the Hollywood strike in terms of content strategy for the upcoming season.
As reported last week, Paramount Global saw increases in demand for Paramount+ content in Q2 2023, but the company must get creative with all of its entertainment assets in order to stand out during the dual WGA and SAG-AFTRA strikes.
According to Parrot Analytics latest report, Paramount+ continues to build momentum in key metrics of audience demand, including US Total Catalog Demand Share (11.2%, a record high); and US Originals Demand Share (6.0%, T-record high); Global Originals Demand Share (5.0%, a record high).
While this growth is good news, Paramount+ has a ways to go before getting into the top three streamer conversation alongside Netflix, Disney, and Warner Bros. Discovery.
As the Hollywood strikes continue, broadcast and linear networks will be among the first to see the effects of a lack of new scripted series. Paramount Global is setting up CBS for success in the short term with its recent programming decisions.
Linear Strategy
Among other changes, CBS will double down on its iconic reality series Survivor by releasing 90 minute episodes of the upcoming 45th season. In Q2 2023 Survivor was the fourth most in-demand reality series with global audiences, and the eighth most in the US.
CBS will also start airing reruns of Paramount Network smash hit Yellowstone. The show’s streaming rights are licensed to NBCUniversal’s Peacock, so Paramount Global will be happy to provide the series with a new audience in house.
During Yellowstone’s latest batch of new episodes (November 13, 2022-January 1, 2023), it drew 39.2x more demand than the average show in the US, placing it in the top 0.2% of series across all platforms. In Q2 2023, without any new episodes, Yellowstone still maintained average demand of 27.6x. This low off-season decay rate suggests CBS is poised to benefit from both repeat viewings and new audiences discovering the show for the first time.
Nickelodeon drives a significant share of attention to Paramount+ and remains a staple when it comes to kids content, which is less reliant on new episodes than scripted series catered to older audiences.
Live Sports
CBS has access to the most valuable asset in US entertainment: live NFL games. It also will be broadcasting Super Bowl 58 in early 2024. With Paramount+ simulcasting CBS coverage, and cord cutting accelerating, look for record NFL streaming numbers when the 2023 season gets underway.
Between Ted Lasso, Welcome to Wrexham and Messi’s MLS arrival, soccer is having a proverbial moment in the US. Paramount+ is in a good position to take advantage of this momentum with exclusive rights to the UEFA Champions League, whose group stage starts shortly after the new NFL season kicks off.
Streaming Originals Demand Share
This quarter Paramount+ hit a new high in global originals demand share (5.0%), and moved ahead of Hulu for 5th place in this category.
Demand for Paramount+ Originals is still driven by the Star Trek and Taylor Sheridan universes. These two franchises accounted for seven of the 10 most in-demand Paramount+ originals worldwide, and eight of the top 10 in the US.
In the US, Paramount+ maintained its record high 6% originals demand share. It also jumped up in the rankings in the US from seventh place to sixth place, leapfrogging Warner Bros. Discovery’s Max.
On Platform Demand Share
While demand for original series drives subscription growth, library content is key for customer retention, an increasingly crucial element of all streaming strategies as the market matures and consumers are offered more choice and easier ways to cancel than ever.
Library content will also be a crucial short-term asset as Hollywood’s labor strikes prolong, with new shows and movies likely to run dry in late 2023 and early 2024.
Paramount+ gained significant share in Q2 2023, from 9.2% to 11.2% versus last quarter, and from sixth to fifth place. Paramount+ jumped ahead of Disney+ in this ranking, and is within a rounding error of Amazon Prime Video for fourth.
The combination of its Walmart+ deal and Showtime platform consolidation seem to be helping Paramount+ with scale, but it’s unclear how much this will add to the company’s bottom line as all streaming companies focus on reaching consistent profitability.
Paramount+ has a relatively even mix of demand for movies and TV on the platform, suggesting the Paramount film library could also help during a prolonged strike.
