Paramount's Pivot: Streaming Scale, Sports, and the WBD Deal Take Center Stage
Q2 2026 shows a company in transition—Paramount+ hits 81.6M subs, EBITDA up 27%, and management remains bullish on the Warner Bros. Discovery merger despite a pending trial.
VIAC · Earnings Call · 2026-08-04
Q2 Results: The Transition Is Gaining Traction
Paramount's second quarter 2026 earnings call painted a clear picture: the company is no longer just talking about transformation—it is delivering. Adjusted EBITDA grew 27% year-over-year to $1.1 billion, and the company raised its full-year adjusted EBITDA guidance to $3.8–$3.9 billion. Free cash flow conversion is now expected to be at least 10%, up from 5%. The driver? A streaming business that is finally scaling. “Revenue up 16% for Paramount+, roughly 1/3 of that was from subscriber growth, 2/3 from our ARPU increase.” — Dennis Cinelli, Chief Financial Officer · 2026-08-04 Paramount+ added 2 million subscribers in the quarter, reaching 81.6 million globally, with management explicitly noting the World Cup and UFC as content catalysts. The streaming story is supported by a broader strategic pivot. David Ellison opened the call with a summary of the year's achievements: “We nearly doubled our theatrical slate, deepened our roster with top-tier creative talent, greenlit 40 new and returning series for Paramount+, expanded our sports portfolio with the UFC, Zuffa Boxing while broadening our partnerships with UEFA.” — David Ellison, Chairman and Chief Executive Officer · 2026-08-04 The investment in premium content is starting to pay off in retention—the company reported its best quarter ever for Paramount+ retention and double-digit growth in total view hours.Platform Convergence and Sports Rights
The technical convergence of Paramount+, Pluto, and BET+ is on track, with the web experience for Pluto live since June 30 and full integration expected by end of summer. This is not just a cost-saving exercise; it unlocks advertising and data synergies. As David Ellison explained, “By bringing them together, we're going to get significant benefits... we're going to make incremental investments in Pluto as we get towards the back half of this year.” — David Ellison, Chairman and Chief Executive Officer · 2026-08-04 The unified tech stack is also designed to make the company indifferent to whether a subscriber chooses an ad-tier or subscription plan—a key to improving monetization. Sports rights remain a core strategic lever. The UFC's performance on Paramount+ has validated management's appetite for more. “I'd say our confidence based on the UFC's performance on Paramount+ has only really reaffirmed basically that position.” — David Ellison, Chairman and Chief Executive Officer · 2026-08-04 The global momentum around World Cup -related content was visible across Paramount+ and Pluto, and the company is actively looking to expand its sports portfolio in additional territories.AI as a Tool for Storytellers
A particularly forward-looking theme was AI. David Ellison was emphatic that AI is a tool, not a replacement:He cited the Terminator example—a film that cost $4 million in 1984—and argued that AI-driven efficiencies could unlock new creative opportunities. The company is already seeing 50% faster iteration in computer programming, and believes AI will deepen fan engagement through interactive experiences with characters like PAW Patrol's Skye. This aligns with broader industry moves toward artificial intelligence applications in media, though Paramount is positioning itself as a defender of copyright and creator rights.We really do view artificial intelligence as a tool for storytellers, not a replacement for them.