Paramount+ Adds 2 Million Subscribers as Revenue per User and Retention Improve

Paramount+ reached 81.6 million subscribers after removing nearly 2 million lower-revenue bundle subscribers. Direct-to-consumer adjusted EBITDA rose 44%.

Paramount+ added approximately 2 million subscribers during the second quarter, reaching 81.6 million worldwide. Average revenue per user increased, and Paramount described the quarter as its best for retention.

Paramount+ revenue rose 16% year over year to $2.061 billion. Average revenue per user increased approximately 12%.

Paramount’s direct-to-consumer business, which includes Paramount+, Pluto TV and Paramount+ with Showtime, generated $2.474 billion in revenue. That was up 9% from the same period last year.

Direct-to-consumer adjusted EBITDA increased 44% to $366 million, producing a 14.8% margin. Paramount said revenue growth and lower costs helped lift earnings. The 44% increase also included an accounting benefit, so the entire gain did not come from business performance.

Paramount+ Grows After Removing Lower-Revenue Subscribers

Paramount removed nearly 2 million international hard-bundle subscribers during the quarter. Paramount+ still added approximately 2 million subscribers on a net basis.

Hard-bundle subscribers receive access through another service, such as a mobile or pay-TV package. These arrangements can expand a streaming service’s reach, although some subscribers generate relatively little direct revenue.

Paramount plans to remove approximately 4 million to 5 million hard-bundle subscribers during 2026. Together, those subscribers accounted for less than 2% of Paramount+ revenue in 2025.

The company is reducing subscriber relationships that add scale but contribute a relatively small share of revenue.

Paramount+ Reports Its Best Retention Quarter

Paramount described the second quarter as the best retention quarter and lowest-churn quarter in Paramount+ history. It did not disclose either rate.

The company credited original programming and live sports, including Dutton Ranch, UFC programming and FIFA World Cup coverage in six Latin American countries. Viewing hours on Paramount+ grew by double digits.

Paramount+ added subscribers while reporting lower churn, according to the company. Higher revenue per user becomes more meaningful when subscribers stay.

Streaming Helps Offset Pressure in Traditional Television

Paramount reported total second-quarter revenue of $6.913 billion, up 1% year over year. Companywide adjusted EBITDA rose 27% to $1.099 billion.

Direct-to-consumer growth helped offset continued pressure in Paramount’s traditional television business. Pay-TV subscriber losses continued to weigh on affiliate revenue.

Paramount expects direct-to-consumer operations to be its main source of revenue growth in 2026.

Insider Take

Paramount+ grew after removing nearly 2 million bundle subscribers from its reported total. The 4 million to 5 million hard-bundle subscribers Paramount plans to remove accounted for less than 2% of the service’s 2025 revenue.

Average revenue per user increased approximately 12%. Paramount also reported its best retention quarter, although it did not disclose the underlying rate.

The broader direct-to-consumer business reported higher earnings, but the 44% increase in adjusted EBITDA included an accounting benefit. The full gain cannot be credited to operating improvements.

For subscription operators, this quarter is a reminder to look beyond the topline subscriber count. How much revenue are different subscriber groups producing? Are they staying? A subscriber relationship that adds scale but little revenue may be less valuable than the reported total suggests.

Sources

• Paramount Reports Second Quarter 2026 Financial Results
• Paramount Q2 2026 Shareholder Letter
• Paramount Quarterly Results
• Paramount 2025 Annual Filing

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