Yahoo Finance Live checks out Paramount shares and examines CEO Bob Bakish's earnings growth forecast in the streaming space into next year.

Video Transcript

- Also want to take a look at one of the companies whose streaming services is available on Roku. Shares of Paramount trading down on the day after the company missed Wall Street estimates earnings per share. The CEO Bob Bakish telling investors in a letter to shareholders, quote, "our content and platform strategy is working. And even with more exceptional content coming this year, we expect to return the company to earnings growth in 2024." Content is very, very expensive. And it is just a loser for a lot of the streamers at this point.

- Yeah. It certainly is a loser. I think the Street's very concerned just about what those numbers are going to look like. Streaming profitability clearly a huge question mark here for Paramount as we look ahead to what those numbers, what those losses could potentially be this year. It's a very, very tough balance. They're looking to expand their streaming services. Also licensing its content. We talk about the fact that this whole landscape, media landscape certainly has changed, will continue to change.

Streaming, obviously, the future there. And up against some tough competition. Talk about Disney, their numbers recently. Netflix. Certainly no shortage of streamers out there. So they are up against that competition. That's why content spend and content that they are putting out on these platforms is so critical in this type of environment. Subscriber numbers, one the highlights of the quarter, was actually pretty good. They do remain on track to hit some of their goals over the next year or two. But it's all about the losses, all about what they're spending right now. And that is what the Street is certainly focused on.

- Yeah. 56 million subscribers I think where they came in in subscription growth. Up 48%. A pretty solid number how. Sticky is that content? They have succeeded with "Tulsa King." They have succeeded with "1923" and a few others. But the amazing thing is when you just step back and you remember the biggest hit Paramount has brought to the table and probably the biggest hit in all of television is, of course, "Yellowstone" not on Paramount Plus.