On Wednesday, Paramount Global fell short of analysts’ estimates for quarterly revenue as the company struggled with the absence of major content releases and an extended weakness in ad sales.

Total revenue increased 5 per cent to USD 6.92 billion in Q3 but missed the average estimate of USD 7.01 billion. Shares of the media giant dropped 5 per cent in premarket trading.

Various factors, such as high inflation, softening consumer demand across products and services, and geo-political unrest in certain regions, have forced companies to pull back on advertising spending.

Paramount said advertising revenue fell 2 per cent in the quarter. Revenue in TV Media declined 5 per cent to USD 4.95 billion, capturing the bulk of weakness in the ads market.
The company’s Paramount+ streaming services added 4.6 million subscribers in Q3, compared to the 4.9 million added in the preceding quarter. Overall, revenue from the direct-to-consumer segment leapt 38 per cent to USD 1.23 billion.

On Tuesday, Fox Corp reported better-than-expected quarterly revenue, with an 8 per cent jump in ad revenue due to higher political advertising revenue on its TV stations.

Last week, Comcast Corp (NASDAQ:CMCSA) reported a decline in ad sales, and its executives flagged higher costs related to the broadcast of the upcoming World Cup soccer tournament.