Paramount Global (PARA): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Paramount Global, a media giant with a rich history, operates and generates revenue in today's dynamic market? Despite a revenue of €27.16 Billion in 2024, the company faces challenges in a competitive landscape. Read on to explore the journey of Paramount Global, from its ownership structure to its mission and the strategies it employs to stay relevant, including its streaming platform Paramount+ which saw a 33% increase in revenue for FY2024.

Paramount Global (PARA) History

Paramount Global Founding Timeline

Year established

The company was established in 1914.

Original location

The company's original location was in Hollywood, California.

Founding team members

The founding team members included:

• W.W. Hodkinson
• Adolph Zukor
• Daniel Frohman
• Charles Frohman

Initial capital/funding

In its early years, the company, then known as Famous Players-Lasky, was capitalized with around $12.5 million, which allowed it to attract significant talent and expand its production capabilities.

Paramount Global Evolution Milestones

Paramount Global Transformative Moments

• The Paramount Decree of 1948: This Supreme Court decision forced the company to divest its theater chains, fundamentally altering the studio's business model and ending the era of vertical integration in Hollywood.
• The Acquisition by Gulf+Western in 1966: Marked a shift in ownership and corporate strategy, moving away from being solely a movie studio to part of a larger conglomerate.
• The Merger with Viacom in 1994: This merger significantly expanded Paramount's reach into television and cable, creating a media powerhouse with diverse assets.
• The 2005 Viacom Split and Subsequent 2019 Re-merger with CBS: These corporate maneuvers reflected evolving strategies in response to the changing media landscape, eventually reuniting Paramount with CBS to leverage synergies across broadcasting and film.
• The Rebranding to Paramount Global in 2022: Signified a strategic pivot towards streaming and global content distribution, underscoring the company's commitment to Paramount+ and its international expansion.

To gain more insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Paramount Global (PARA).

Paramount Global (PARA) Ownership Structure

Paramount Global features a dual-class stock structure, where a significant portion of voting power is concentrated in the hands of a few key shareholders, influencing the company's direction and governance.

Paramount Global's Current Status

Paramount Global is a publicly traded company, listed on the NASDAQ under the ticker symbol PARA. This means that its shares are available for purchase by the general public, and the company is subject to the regulations and reporting requirements of the U.S. Securities and Exchange Commission (SEC).

Paramount Global's Ownership Breakdown

The ownership of Paramount Global is distributed among various shareholders, including institutional investors, individual investors, and insiders. As of the fiscal year 2024, the ownership breakdown is as follows:

Paramount Global's Leadership

The leadership team of Paramount Global is responsible for setting the strategic direction of the company and overseeing its operations. As of April 2025, the key members of the leadership team include:

• Brian Robbins: President and Chief Executive Officer
• Naveen Chopra: Executive Vice President, Chief Financial Officer

Understanding Paramount Global's ownership structure and leadership provides valuable insights into the company's governance and strategic decision-making processes. For more in-depth information about Paramount Global's investors, read this article: Exploring Paramount Global (PARA) Investor Profile: Who’s Buying and Why?

Paramount Global (PARA) Mission and Values

Paramount Global aims to create content that connects with audiences worldwide, reflecting a commitment to diversity, innovation, and social responsibility. The company's values emphasize creativity, integrity, and collaboration, shaping its approach to entertainment and business practices.

Paramount Global's Core Purpose

Official mission statement

While Paramount Global doesn't have a single, universally publicized mission statement, its core objectives can be inferred from various official sources and public statements. These reflect a dual commitment to creating compelling content and delivering value to shareholders.

• Producing and distributing high-quality entertainment content across various platforms, including film, television, and streaming.
• Focusing on creating content that resonates with diverse audiences globally.
• Driving innovation in content creation and distribution to stay competitive in the evolving media landscape.
• Ensuring financial performance and delivering value to shareholders through strategic investments and operational efficiencies.

Vision statement

Paramount Global's vision is to be a leading global media and entertainment company that creates premium content and experiences for audiences worldwide.

• To be a premier content company with a portfolio of recognized and respected brands.
• Expanding its global reach and deepening engagement with audiences through diverse content offerings.
• Leading the industry in innovation, particularly in streaming and digital media.
• Creating long-term value for shareholders through strategic growth and operational excellence.

Company slogan/tagline

Paramount Global does not currently have an overarching official slogan or tagline. However, individual brands and campaigns often feature their own slogans.

To gain more insights into Paramount Global's investors and their motivations, check out this analysis: Exploring Paramount Global (PARA) Investor Profile: Who’s Buying and Why?

Paramount Global (PARA) How It Works

Paramount Global operates as a global media and entertainment company, creating and distributing content across various platforms, including film, television, and streaming services. The company generates revenue through advertising, affiliate fees, subscriptions, and content licensing.

Paramount Global's Product/Service Portfolio

Paramount Global's Operational Framework

Paramount Global's operations are structured around content creation, distribution, and monetization. Key aspects of its operational framework include:

• Content Production: Developing and producing original television shows, films, and digital content through its various studios and production companies.
• Distribution: Distributing content through its own networks (CBS, Showtime, MTV, Nickelodeon), streaming platforms (Paramount+, Pluto TV), and theatrical releases (Paramount Pictures).
• Licensing: Licensing content to third-party broadcasters, streaming services, and international markets.
• Advertising Sales: Generating revenue through advertising on its television networks, streaming platforms, and digital properties. In 2023, advertising revenue accounted for $9.05 billion.
• Subscription Services: Earning revenue from subscriptions to Paramount+ and Showtime, offering premium content to paying subscribers. Direct-to-consumer revenue reached $5.47 billion in 2023.
• Affiliate Fees: Receiving fees from cable and satellite providers for carrying its television networks.

Paramount Global's Strategic Advantages

Paramount Global possesses several strategic advantages that contribute to its market position and competitive edge:

• Iconic Brands: Owning a portfolio of well-known and respected brands, such as CBS, Paramount Pictures, Nickelodeon, and MTV, which attract a broad audience and provide a strong foundation for new ventures.
• Extensive Content Library: Maintaining a vast library of films and television shows, which can be leveraged across multiple platforms and generate recurring revenue through licensing and streaming.
• Diversified Revenue Streams: Generating revenue from various sources, including advertising, subscriptions, affiliate fees, and content licensing, which reduces reliance on any single revenue stream.
• Global Reach: Operating in numerous international markets, allowing it to tap into diverse audiences and expand its revenue base.
• Streaming Platform Growth: Paramount+ has experienced substantial growth in subscribers, reaching over 71 million subscribers globally by the end of 2023. This positions the company well for the future of content consumption.

To gain more in-depth knowledge about the company's financial stability, read this article: Breaking Down Paramount Global (PARA) Financial Health: Key Insights for Investors

Paramount Global (PARA) How It Makes Money

Paramount Global primarily generates revenue through its various media networks, including cable channels and broadcast television, film entertainment, and direct-to-consumer streaming services.

Paramount Global's Revenue Breakdown

Paramount Global's revenue is divided into the following categories:

Paramount Global's Business Economics

Paramount Global operates within the media and entertainment industry, where content creation and distribution are central to its business economics. Key aspects include:

• Content Production and Licensing: Paramount invests heavily in producing original content, which it then licenses to various platforms, including its own streaming services and other networks. The success of its content directly impacts revenue through subscriptions, advertising, and licensing fees.
• Advertising Revenue: A significant portion of Paramount's revenue comes from advertising, particularly through its TV networks and streaming platforms. Advertising rates are influenced by viewership numbers and demographic targeting.
• Subscription Model: Paramount's direct-to-consumer streaming services rely on a subscription model, where monthly or annual fees provide access to a wide range of content. Subscriber growth and retention are critical for this revenue stream.
• Theatrical Releases: The performance of films in theaters contributes to revenue through ticket sales and subsequent home entertainment releases.

Paramount Global's Financial Performance

Paramount Global's recent financial performance reveals key trends and metrics:

• In 2024, Paramount Global reported total revenue of $30.21 billion.
• The TV Media segment accounted for $17.8 billion of the total revenue.
• The Direct-to-Consumer segment saw substantial growth, reaching $7.2 billion in revenue, driven by increased subscribers and higher subscription fees.
• Filmed Entertainment contributed $5.2 billion, influenced by the success of theatrical releases and home entertainment sales.
• The company's operating income was $2.5 billion, reflecting investments in content and streaming platforms.

For more detailed insights into Paramount Global's financial health, refer to this analysis: Breaking Down Paramount Global (PARA) Financial Health: Key Insights for Investors

Paramount Global (PARA) Market Position & Future Outlook

Despite facing challenges, Paramount Global remains a significant player in the media and entertainment sector, leveraging its content library, strong brand recognition, and strategic partnerships to navigate the evolving market. The company's pending merger with Skydance Media, expected to close in 2025, signals potential strategic shifts and a focus on strengthening its market position.

Competitive Landscape

Opportunities & Challenges

Industry Position

• Paramount Global operates in a highly competitive and dynamic industry, facing challenges from companies like Netflix, Disney, Warner Bros. Discovery, and NBCUniversal.
• The company is focusing on strengthening its direct-to-consumer segment, with Paramount+ seeing a 25% revenue growth and adding 3.5 million subscribers in Q3 2024.
• Paramount Global is also working on cost efficiencies, aiming to achieve $500 million in annual run rate savings.
• The company's market capitalization was $7.66 Billion USD as of April 2025.
• In 2024, Paramount Global distributed $0.39 USD as dividends.

To gain more insights into Paramount Global's investor profile, consider exploring this resource: Exploring Paramount Global (PARA) Investor Profile: Who’s Buying and Why?