Q4 2021 ViacomCBS Inc Earnings Call

February 15, 2022

And we are keeping our promises.

We are consistently outperforming our goals ahead of schedule.

From growth in our subscriber base to growth and brand recognition and growth in operating revenue.

We are doing it all faster than anyone expected and we are delivering win after win after win.

This does not happen by accident.

We are winning with one team loaded with talent creativity and expertise and one integrated company that is greater than the sum of its parts.

We are winning with hits that connect with audiences across all demographics and in markets around the world.

And we are winning with our unique differentiated streaming services and free pay and premium.

And of course, I have to give a call out to power Mon plus which in less than a year has established itself as the leading brand in the industry.

Our strategy has always been to harness the strength of our traditional business to build something new with our world class content fueling our growth.

This is what sets us apart as a company and positions us to succeed.

We are making the right investments in the right content in the right places.

And we are confident based on our track record of successes over the past two years that we can deliver the return on investment that you expect and deserve.

We have set in motion a virtuous cycle.

Our legacy business powers our transformation.

Our transformation enhances and expands our legacy.

We have so much to be proud of so much to be optimistic about and we are just getting started.

The opportunity we see ahead across all brands is my Dad's vision come to life, one powerful company that creates content that keeps audiences wanting more.

And Paramount was always at the core of this vision.

For more than 100 years, Paramount Studios has been known for cinematic excellence.

But paramount is also an idea.

Promise to be the best it.

It is the idea that inspired us to bring together the best in entertainment across C. B S. B E T MTV, Nickelodeon and Showtime and more.

And it is the idea that inspired our businesses and our brands to define and redefine entertainment again and again for generation after generation.

Indeed, Paramount has always represented brilliant storytelling for audiences around the globe on the big screen, the small screen and every device in between.

It is what we are it is who we are and it is who we are destined to be.

And that is why today, we are thrilled to announce that Viacom CBS has become paramount global or simply Paramount.

This afternoon, we invite you to take a closer look at how far we've come.

Where we are going and most importantly, how we plan to get there.

We want you to take note of the extraordinary progress we have made over the past two years and all the momentum we have gathered.

And know that there was no higher priority for us and no higher priority for me than unlocking of maximizing value for all of our shareholders.

As I said I have never had more reasons to be excited about the future of this company.

Paramount and now I am proud to introduce our president and CEO Bob back ish.

Yeah.

[music] onto the sort of as you are to talk about this company we lead.

As a company we love her.

For Mt.

Iconic piece of Paramount represents our history as pioneers of the Golden age of Hollywood.

Today as we embrace this powerful name were also pioneers of an exciting new future.

And with the momentum we have Paramount is already reaching new highs.

For more than two decades, now I've witnessed the power of Paramount and all it represents.

I'm, saying for example, the global impact of Paramount's gripping films like the mission impossible franchise, which sold out time and time again and theaters all around the world.

I've seen during my international years, how the Paramount channel quickly became among our biggest branded networks in the markets outside the United States.

And I've seen more recently the audience expanding impart the spike being rebranded as the Paramount network in the U S. Thanks to movies, a megahertz like Yellowstone and more.

And now I think we'll see more and more every day the incredible momentum of Paramount plus our flagship streaming service.

Our momentum is building and as it grows and we take Paramount plus and all other streaming businesses to the next level.

The size of the opportunity. We see ahead is matched only by the scale of our ambition to seize it.

We can't talk about our momentum without talking about streaming.

Just look at the facts.

On a paid streaming platforms, we just wrapped our best quarter ever for new subscribers. In fact, our company added 9.4 million new streaming subscribers in Q4 alone 80% of them on Paramount plus.

And on Pluto TV, our free AD supported streaming TV platform, we delivered out of this world results as well.

Pluto gained a record 10 million monthly active users in Q4 splitting its reach to an audience of nearly 65 million monthly actives.

And for full year 2021.

And over a billion dollars in revenue almost five times, what it delivered just two years ago.

When it comes to realizing our streaming goals, we're moving fast and gaining even more speed.

Already we are one full year ahead of schedule posed to them subscriber results. We didn't expect to see until next January and by the end of 'twenty 'twenty. Two we're on track to hit our 2024 subscriber goal two full years ahead of schedule.

This momentum.

Leading the industry on multiple fronts.

Q4, we had the fastest subscriber growth in streaming.

And poodle TV continued to lead its category both in <unk> and revenue.

Furthermore, Paramount plus was named the fastest growing brand of 2021 not just in streaming mind, you, but in any industry.

And it's not just streaming where we see this momentum we're firing on all cylinders with number one hits across the actual broadcast cable and streaming.

In Q4 alone we had the top four entertainment programs on all of television with CBS as Ncis, the equalizer enough be eye and Paramount networks Yellowstone.

And we are number one shows across countless categories, including the number one comedy with young Sheldon and the number one news program in 60 minutes. The number one kids show and Nickelodeon Paw patrol the number one competition reality show on cable with MTBE is the challenge the number one premium show shut Showtime's Dexter new blood.

And this quarter, we became the first studio with two number one films at the box office with Scream and Jack asked Forever.

Both of which will debut on Paramount plus in March.

And as we look ahead powered by our phenomenal Paramount content engine, we see a huge global opportunity in streaming.

Much larger potential market that can be captured by television and film alone.

We're excited about that opportunity.

And our ability not just to compete but to thrive and thereby create significant value for both consumers and shareholders.

Why because we have a differentiated playbook for streaming success, one that leans into a particular strengths that we are broad and brought in four key ways across our content, our streaming business model, our mix of platforms and our global reach.

This breath positions us to access a larger accessible market penetrated more quickly and do it all efficiently and sustainably.

So let's break that down.

Starting with our binge worthy buzzworthy content, that's not just rich and deep broad and varied.

On panel plus we take the plus seriously.

We're home to the most diverse content offering in streaming.

That enables us to serve a whole household every generation from grandparents, who equipped by the godfather. When it premiered in 1972, two preschoolers who are just as excited about paw patrol the movie in 2022.

And we don't just serve the whole household we serve a whole country coast to coast, we capture a broad range of households by income and geography.

And increasingly that's the model, we're applying all over the world cleared in hips and more than a dozen languages.

Over the next year, you'll see us building on that foundation, expanding our success across key genres lanes scripted and unscripted sports news and events kids and family and movies of all kinds.

And speaking of movies I'm pleased to announce that starting with our 2024 releases Paramount plus will become V streaming home for all new Paramount movies following their theatrical runs.

You'll see a similar breadth in our streaming business model the second source of our advantage.

We're proud of our strength in both pay and free streaming, including leading the U S market and free AD supported streaming TV with Pluto TV.

We meet consumers, where they are at serving different segments in different ways and reaching a larger total addressable market in the process.

With the benefit of dual revenue streams in both advertising and subscription were maximizing the revenue pool.

We can the largest addressable market goes right to the heart of our third advantage, our broad set of platforms spanning linear TV theatrical and streaming.

Some see our legacy in each of these platforms have a hindrance on our streaming class.

We see it as exactly the opposite.

Paramount's reach recognition and relationships are core reasons why our streaming strategy is working our existing platforms allow us to launch and grow shows and fandoms for streaming to help us promote and make the most of our content investments across platforms. They.

They increase the range of value, creating commercial partnerships, we can build.

And they drive our ability to scale quickly for the future.

And that's important because the future is global.

The breadth of our global reach as our fourth source of competitive advantage.

Some companies only license outside the United States.

We operate.

We have been a truly global operating company for decades with teams on the ground in more than 30 markets and we have the studios the franchises the talent and the production capabilities to move global audiences with locally relevant content drew.

Driven by more than a dozen production hubs around the world.

We're poised to replicate this success to an even bigger bolder affect in streaming.

Now, we know being broad isn't an amendment itself.

What matters is the being broad as a means of capturing significant financial benefits.

It's a means of maximizing our streaming revenue and accelerating its growth.

As a means of leveraging investment more effectively and running operations more efficiently.

It's a means of moving further faster than ever before and turning streaming into a sustainable business for the future.

And know this we are committed to that future to creating that value.

We know the opportunity that hand is massive and we've got the passion the ambition and the discipline to deliver.

As of today, we're raising our guidance signaling our conviction that consistent execution of our strategy will deliver performance to match.

In fact, we anticipate reaching 100 million subscribers by 2024 compared to the 65 to 75 million, we shared last year.

Naveen will expand on this and much more in his presentation.

And to set the stage our colleagues are about to show you exactly how in every way, we're raising the bar for ourselves setting our ambitions higher than ever before.

In closing, let me just say how proud I am of the progress our teams across the company have made in.

And I'm equally excited about the new heights that lie ahead for Paramount.

When we spoke to last year.

Some of you thought we were on an impossible mission.

But today as you can see it's not only possible it's happening.

Here to share more as someone who knows a thing or two about making the impossible possible.

Please welcome the one and only Tom cruise.

Yeah.

[music].

Yeah.

[music].

Okay.

Yeah.

[music].

I'm, Tom Ryan President and CEO of streaming.

I'll leave the acrobatics, Tom cruise, but I do want to talk about strategy for the expansion and evolution of Paramount plus.

Let's start with our expansion, where we're leveraging our global footprint to bring Paramount plus to new markets with enormous potential.

Just one year, we launched the service in 25 markets across Latin America, Canada, and Australia, and a 2022 we're building on that momentum expanding to some of the biggest markets in the world.

We'll launch in the U K, South Korea, and the Caribbean by this summer and will continue with a focus on Europe , Italy, Germany, France, Switzerland, and Austria in the second half of the year.

The scale most effectively we're creating customized go to market plans for each region with tailored partnerships marketing and distribution strategies and even product offerings were.

We're deploying hard bundles, where we work with a local provider to give their customers immediate access to Paramount plus.

As well as the direct to consumer and Ala Carte distribution, where sometimes a hybrid of all three.

We're taking the annual plan, we rolled out in the U S and expanding it internationally.

At the same time, we're creating brand new offerings like mobile only plans for markets, where value is key and mobile devices dominate streaming consumption.

To do all of this we're leaning on our longtime global presence and a vast network of relationships with partners all over the world.

Last year, we doubled down on strategic partnerships closing deals with T mobile in the United States and Sky in Europe to name just two examples.

Today, we're proud to announce a new partnership this one in France with can help loose one of the largest providers in the market.

Through this hard bundle partnership can help lose subscribers will get access to Paramount plus immediately at launch, allowing us to gain a big foothold and a strong launch pad.

These kinds of partnerships and hyper tailored strategies will help us continue to scale quickly and economically.

Reinforcing our competitive position.

Across our streaming services and Sky Showtime are innovative joint venture with Comcast that certain territories encompassing 90 million homes, primarily in eastern Europe will be in more than 60 markets by the end of the year with more than 60 partners.

Beginning in 2023, we'll turn our sights to Asia Africa, and the Middle East building on our momentum to bring Paramount plus to every region of the world.

Our global expansion underscores an important lesson in streaming.

The stories, we create are only as powerful as the audience they reach.

So in addition to expanding the service to more people. We're also enhancing the service itself.

We're constantly asking ourselves how do we make this experience better smoother more personalized not just how do we serve users how do we delight them.

A year in we've made tremendous strides.

We continue to serve a broad diversity of tastes through programming, that's tailored to the individual and personalized with a distinct editorial voice.

Increasingly viewers are spending more time streaming outside of our top titles and watching a greater variety of series and movies each month.

And we're continuing to innovate.

We have revamped our brand hubs and introduce collection pages do it.

We've used innovations from across our platforms to create an even richer experience on Paramount plus.

With Pluto TV for example, we pioneered leaned back linear channels that allow users to simply fall into a shell.

It's easy entertainment that Amanda nothing of the viewer because our programming team does the work.

And it drives effortless discovery and engagement, bringing the best of our deep catalog to the fore.

Now, we've launched 20 linear franchise and genre channels in the U S. On Paramount plus so if you love animation or TV classics, you can jump straight in and discover something new.

Just a few weeks in the adoption of linear channels has grown quickly and the people who use this feature are spending 40% more time on the service than they were before.

Simply put viewers are more easily finding content to love.

Our goal with these product enhancements is to give people every reason to explore and enjoy the full breadth of our content on Paramount plus to make the experience. So engaging it becomes part of your daily routine.

So let's talk about how we're helping subscribers access even more of our amazing amazing streaming services right there in the Paramount plus app.

Our existing bundle of Paramount plus and Showtime has performed very well out of the gate.

That's because users can access to premium content offerings with streamline sign up but viewed in distinct apps.

Starting this summer, we're making showtime even easier to access in one app experience. The Showtime service will still be available separately, if that's your preference.

But within Paramount plus it will be seamless to sign up for Showtime and easier than ever to discover great shows.

You'll be able to simply upgrade your paramount plus subscription to a bundle that includes the Showtime service and then view all that content in a single single user experience.

And then when you're done watching mayor of Kingstown, you'll be able to move immediately to the next season of billions without ever leaving the Paramount plus app.

Less than a year after launch, we're expanding into new markets and making our products easier to explore and more seamless to operate and it's all for one reason to build a home worthy of our content.

To tell you more about our global content strategy. Please welcome our Chief programming Officer, Todd here Giles.

[music].

Thanks, Tom It's a good thing you're building a worthy home because our content is unrivaled on Paramount plus we've got something for everyone take a look.

In this moment I feel like anything is possible.

Have a mission to bring us forward.

And you will make the path by traveling.

And in this new World all of whom will go where no one has gone before.

And from what I see.

I am honored to be in your company.

Yes.

We begin with breaking news.

We don't change the world.

Showtime.

Yes.

I guess I'm just curious.

Yes.

Okay.

Sure.

Inventory.

Turning to him retirement insurance.

Yeah.

Please.

Teach people on this call.

I need you to produce forgot about it.

Okay.

That's our target audience maybe.

Okay.

That's a mountain of entertainment.

In fact, as Bob mentioned, we have the broadest diversity of content of any streaming service out there we've got movies kids and family programming news sports and events unscripted television adult animation and scripted shows of all types are Q4 growth didn't come from one or two of these lines ever.

Every single Lane helped deliver those subscribers.

Just look at the top 10 acquisition drivers from last year.

Movies Sports drama comedy Kids. These are the titles that draw people to the service.

And when we look at what keeps people engaged the range gets even broader.

Reality shows with tape libraries and original series in franchises that give fans more of what they love.

As Bob said, our content reaches audiences of all ages coastal and central streaming obsessed and streaming curious across the U S and around the world.

We are super serving the whole household from preschoolers to rapid sports fans to news junkies.

When more people in a given household watch more shows those subscriptions only get more valuable the more profiles and I'll count has and the more titles watched the higher the retention and the lower the churn.

And much of our growth is coming from those hard to reach younger audiences, where there is enormous potential.

We serve the whole country too with the broadest range of households by income and a geographic spread that covers not just the east and west coast, but the center of the country, where paramount plus over indexes compared to other streaming services.

Now the breadth of our content is just one piece of the puzzle.

Through the breadth of our platforms.

Meet users wherever they are spending their time, whether that's a big theatrical release linear TV AD supported streaming or social media and use those opportunities to cross promote and introduced our content to new audiences.

18, 83 for example is a runaway hit and not just because it's totally gripping entertainment, we put the full power of our company behind it we started with Yellowstone and one of the most popular series of all time.

To capitalize on its built in fan base, where he leveraged our platform's linear and streaming free and pay sampling 18, 83 on Pluto TV and Paramount network right. After Yellowstone the same day, we released it on Paramount plus.

And that wasn't just any day, but Sunday when NFL fans, who are deeply engaged on the service.

Thanks to all of this and a powerful strategic marketing campaign that leaned heavily on our in house assets and capabilities 18, 83 has been gaining enormous momentum week. After week, it's now Paramount pluses biggest had ever.

And I am so excited for the next chapter of this done family drama coming later this year and this is just the beginning there's so much more as you'll hear later about in the show from our creator himself Taylor Sheridan.

18, 83 is only one example of our programming strategy that leverages, the quality and breadth of our content and platforms.

And it's working the number of titles stream per user has seen huge growth quarter after quarter and year over year and users who stream of original content are exploring even more than their peers.

Now, even though we're proud of where we are we are not standing still.

And you'll now hear from our content leaders as we look to the future of our programming strategy, we are doubling down on our differentiators.

First we are taking our broad content offering and deepening it with more content across key lanes building, especially on our treasure trove of IP to create lasting hit franchises.

Second we are continuing to bring viewers from show to show linear to streaming and back again across our broad set of platforms.

And finally, we are leveraging our global reach which has long been a defining feature of our company to serve international markets feed our entire global content pipeline and scale Paramount plus in the process.

Before we dive into each content Lane I want to show you just what's possible with stunning creative talent and the right strategy behind it.

It's an iconic franchise with vibrant characters and gripping storylines coming exclusively to Paramount plus in just a few weeks.

Hello.

In fact, we are so excited about season, one I'm thrilled to announce we are green lighting season too.

To tell you more please walk on the Master Chief himself Pablo Schreiber.

Thanks, Tanya My name is Pablo Schreiber and I play the iconic Super soldier Master Chief John 117.

It has been.

Literally a dream come true to put on chiefs helmet, the owner armor and take the fight to the covenant breach.

Bringing this series to life has been a labor of love for so many of us for so long and.

I'm so excited to show you the results in just a few weeks.

Whether you're a SIFI geek or a diehard fan of the Halo franchise or if you just love great TV.

Boy do we have something for you.

Well actually.

We do have something for you.

Please enjoy a sneak peak of the Halo universe like you've never seen it before.

Let's finish this fight.

The nonstrategic within Hunton trained for one purpose.

To win this war.

And the other stuff.

Only effective weapons against the covenant.

Yes.

Sure.

Yes.

Martha Treehouse.

Okay.

Massachusetts recovered since he's taken Gary Taylor.

Yeah.

Wanted to ask the object.

Competition.

But these wouldn't do with a superhuman not sure you can trust.

Can you just tell me.

Scott.

On the P&L when the war.

Okay.

[music].

Yes.

Okay.

Yes.

Okay.

Yes.

Good afternoon, everyone I'm, Brian Robbins, Chief content Officer movies, and kids and family for Paramount plus Paramount Pictures films, and Nickelodeon Kids and family content are crucial to our streaming strategy last year Paramount Pictures achieved new.

Milestones for Paramount plus including a quiet place part two which in addition to being a box office success was the number one film acquisition driver on the platform and a day and day release of Paw patrol the movie the most extreme movie title on Paramount plus ever.

And what we have in store. This year is one of Paramount pictures that theatrical slate ever let's have a look.

Yes.

Okay.

[music].

Okay.

[music].

Tom Cruise, Sandra Bullock, Brad Pitt, Margo, Robbie Idris Elba and Jim Carrey. They are guaranteed to have audience is lining up to see these films in theaters and then these films will make their way to Paramount plus as the home for the biggest must see motion pictures button streaming.

In a film must plug into a greater strategy, it's not enough on its own consumers expect quality and quantity they expect world building and innovation in storytelling.

Paramount Pictures, which is armed with so many beloved franchises recognized around the world will deliver on all of this in the home for all of our Fantastic films will be Paramount plus take the Transformers franchise from Austin or partners that Hasbro. It is gross five.

Billion globally from films alone in a multiple of that at retail and we are excited that the next chapter begins with the release of the seven Transformers rise of the beef in 20th twenty-three, where we're tapping into two incredible talents director Steven cable Junior and Star Anthony.

Ramos This film will be the first of three installments, but before all that.

Coming this fall, we will be releasing a new animated series for kids and families from Nickelodeon that office or fresh take on the iconic brand and in 2024 will extend the franchise further with a C. G animated transformers theatrical film with built in awareness and eggs.

Listing fandoms, where replicating this success with Sonic the Hedgehog, a beloved global hero for over 30 years, now, which recently became a part of the iconic film franchises in the Paramount family and on April 8th.

Highly anticipated sequel to Sonic will premiere in theaters and we are excited to announce today that Paramount say are are developing the first ever original Sonic series for Paramount plus next year. This five action series will feature of the character Knuckles voiced by Agers elbow Paramount Sega are also developing a.

Third Sonic theatrical film and all of this content will make Paramount plus the home for this incredibly popular franchise and in our canon of homegrown franchises is a quiet place with two major hit movies, earning $650 million in global box office, the suspense of a quiet.

Place goes way beyond just the avid family and we are excited to show you just how deep the horror guests and here's my friend, John Krasinski to tell you more about that.

[noise].

[noise], Thank you John town.

<unk> like John our brands and themselves with massive loyal fan bases, who will follow them from theaters to Paramount plus and over the next 24 months, that's what you're gonna see from blockbusters like top gun laws City, Dungeons and Dragons and mission impossible to Babylon from Academy Award.

Winning director Damien shoes, L, starring Brad Pitt and Margo Robbie to the recently announced collaboration from creative Visionaries, Matt Stone and tray Parker, the masterminds behind South Park and music Superstar Kendrick Lamar and all of these will make their way to Paramount plus and as Bob <unk>.

Said, we're thrilled that starting with our 20th 24 releases Paramount plus will become be home for all Paramount theatrical movies. Now just is Paramount Pictures has established itself as the Premier studio brand for generations of audience.

Nick Alodium his kids and family with the most brand loyal audience on the planet and be cost with streaming once families subscribe. They stay subscribed viewers, who come in for kids and family content reduce churn by double digits, creating even stronger longterm value.

And with 25 million U S homes with kids, two to 11 and millions of more globally and Paramount plus being one of the top providers of kids content, well from where we sit the upside is enormous start with the Spongebob universe. It's the number one most stream property.

On the platform with 13 seasons, and two brand new spin off shows camp, Carl and Patrick Star.

Off we are announcing today three new character driven movies exclusively for Paramount plus and a big theatrical temple in the works. We will also usher in a new era of turtle Mania for 2023 with a theatrical release of a new teenage mutant Ninja turtles movie.

From Seth Rogen, who's taking the property back to its original D N a of comedy and action and we will fast follow this series with a villain driven turtles film exclusively for Paramount plot and as we build up our home grown franchises, we're also bringing new ones into the fold.

This fall I am excited for Monster, Hi, where we will reintroduce these classic monsters to a whole new generation of kids with a live action musical movie and a new animated series and also a hot toy line from our partners that Mattel and later this month we have.

The Paramount plus debut of Big name.

The first Adaptational of the best selling book series, known and read by almost any fourth grader, you will find check it out.

Because he's made.

I'm speaking in the third person.

He needs to make middle school.

[noise] excuse me a moment.

Good thing I got my breath through all we have my best friendship is the most Frank Frank.

Oh wait.

And frankly.

Like the team the link to my primary home.

Yeah.

Yeah cause I'm gonna make it.

Okay.

And now when it comes to preschool it doesn't get any bigger than pop patrol. So in the wake of poor patrol the movie's success on Paramount plus we've greenlit the sequel, the Mighty movie for theaters in 2023, and we're pairing it with.

The first ever spin off T V series of path, Nickelodeon and Paramount plus and the success in one preschool franchise has crescendo effects across the whole portfolio, which will also include these paramount plus titles a movie from blues clues Blue's Big City adventure.

Bowing this year and then 20th twenty-three all full length baby shark movie based on the most viewed you tube video of all time and Al High rated Nick series and we're announcing today the return of Dora the explorer with a new animated series for preschoolers and Ah.

Live action series and the same spirit as the recent theatrical for older Kids. So the all this great content lined up we are in the best position.

Alright, Hey, Miranda this as a total surprise and completely unrehearsed totally unrehearsed.

Actually close by those shooting season, two of Icarly. So I just thought I'd pop over to make sure we get a good plug in here for a show and to remind everyone. How big It was last summer Oh 100 per cent I mean, I Carly was the top comedy acquisition driver on Paramount plus last year. It drove billions of impressions on social media Thanks to U S.

And like you said you are taping the new season right now that's cause it Premier later this year, yeah, it's been such a great homecoming for all of US and we're just so grateful to all the fans of the show yeah, and I've, even sort of enjoyed being a meme again anyway. Thanks for the plug I've Gotta get back to set we're doing this whole unresolved issues thing between Carly and Freddie So.

Thanks for Indulging me and thanks, again to everyone and.

Thanks for coming by that was awesome. Thank you Miranda not only was icarly a huge hit in its own right, but it also opened the door for Paramount plus to program more young adult content another huge opportunity for us the incredibly influential Y a audience of $100 million 13 to 34 year olds.

Drive three trillion and spending power, they're huge consumers of content with an average of five S spots subscriptions, each and they dominate social and their endorsement is the most effective marketing campaign you can ever imagine so for them, we're launching a full.

Full slate of why a targeted films and series powered in part by Awesome is the studio behind the recent Y a hits to all the boys 10, 15, and the perfect date and our films include the recently released the in between starring Y a icon Joey King from the kissing booth and upcoming films.

Like Honor Society Ah High School comedy that's a cross between the election and mean girls starring in Gary Rice from Mayor of East Town and Gate Matterazzo from Stranger things and also Hush Hush based on the New York Times Best selling book series Fantasy football from the Ron James Springhill companies starting Marseille.

Martin and the return of Mtv's <unk> with a new movie featuring the original cast that will set up a new world series called Wolf pack based on the acclaimed books by eight O Vanblarcom. So all of this.

This is just what I can squeeze in my a lot of time, there's so much more so much more content creativity and innovation is coming and pulling it all together Paramount legendary list a beloved IP not high profile star power throughout our ecosystem and the generation to <unk>.

Finally hits birth by Nickelodeon all make Paramount plus the home to the biggest most iconic franchises serving everyone from preschoolers to boomers and generations X Y and Z. So if you're a fan of any of these then you must have <unk>.

<unk> plus and what's more these titles will live across films and series and consumer products fueling global fandoms, and driving subscriptions engagement and retention and when it comes to global Fandoms, There's nothing like Star Trek fandom and here to talk about.

What's next in that universe is J J Abrams.

[music].

We have one.

The night Sky and wondered.

What's out there.

The universe.

<unk> and unknowable.

That is until you go through so brave enough to explorers.

Alright.

[noise] hills of all species, who couldn't be more different coming together for the greater good and sometimes not so good sometimes you're dangling out of an airlock.

Holding on for Dear life.

Because he consulted some aliens mother in a way you never knew possible I've done that may too.

And through these adventures, both the ethic and humans.

Fine Coke.

For a brighter future for new frontiers.

<unk>, Kevin in patients with the same mission.

Alright.

Let's get to it.

Star Trek has always looked at the future.

But this year will head to the enterprise's passed and the new prequel series Star Trek Strange New worlds with me as Captain Pike.

We'll explore unexpected places throughout the Galaxy on adventures to get right to the heart of wouldn't make star Trek So great.

Hello.

The Dustin Sky.

Is my heart.

We can go forward together knowing.

That would ever Shadows, we bring with us.

They make the light all the brighter.

We will find things to challenges.

With fries.

So we do not bedroom.

What's the mission.

I explore.

Cool.

[music].

His job.

George Cheeks, Chief content Officer for news and sports on Paramount plus and this is the legendary says zero the home of inter Milan, and AC Milan and the setting for many thrilling you wait for Champions League in Syria matches, you can watch them all on Paramount plus.

We have many of the biggest franchises and lives sports to true differentiator for the service that.

Now to talk about that let's hear from two voices of the most popular sport I'm Paramount plus from our inside the NFL studio in New York, and all time NFL, Great Julian Edelman.

And from our Champions League studio the incredible hosted the Waif a champions League on C. B S Sports Kate Abdo.

Who better to talk about the success of football on Paramount plus then one of the faces of are critically acclaimed coverage take it away.

George.

Something funny K, Yeah. He said football Yeah, I know he said football the frozen tundra they'll run into you want just actually talking about the football and you can play with your <unk>, maybe but have you been watching Paramount plus then you would have seen the greatest to ever play the game of football the goat I would know I played with some complaints I'll email message to Kate.

No, Tom Brady and with Paramount plus you'll get to watch the next generation of football's brightest stars Patrick My homes, Josh Alan King Henry Okay. That's nice, but I was that only one named Ronaldo mainline and back to Al Boys. The bears no rain, Liverpool around Madrid, Munich, Bill Belichick audio Lambofield.

I'll try said old trapper, what does that stadium <unk>, it's the same.

And the reason you and I are here to remind everybody that football.

<unk> and mine is bringing in record audience Paramount and that is a good thing for everyone agreed, but don't you mean soccer football. So anyway, I think it's time to take it off of all of the sports at Paramount.

From the masses to the men's final four from college football checking to Utah and from the N F. L. A champions League football.

I think you mean soccer right <unk>.

Well the tech.

Okay.

Yeah.

Okay.

[laughter].

Uh-huh.

Yeah.

Okay.

The other time.

Yeah.

Japan's first.

Masters champion.

Yeah.

Okay.

Jonathan J O N y.

Today.

Yeah.

Okay.

[laughter].

Like Katyn, Julian said, whether we're talking about football or football Paramount pluses, winning because we have something nobody else does Ah sports ecosystem, where paramount plus and C. B S sports work together to drive subscriptions and engagement.

We have televisions most valuable property the N F L and it's performing better than ever for us take our Thanksgiving day game more than 40 million fans tuned in making it the most watched regular season game and 31 years and the most streamed regular season game ever on Paramount plus this record breaking about <unk>.

Mentum continued into the play offs with our most streamed non superbowl weekend ever now in the span of just one football season, the NFL on Paramount pluses increased by 88% inactive subscribers and by 67% in minutes stream and there's so much more to come thanks to our historic Bolton.

Platform deal that extends our relationship with the NFL through 2033, we're also America's home to the world's most popular sport and look at the sheer tonnage of our exclusive rights and soccer. The 21 22, you wait for Champions League season alone continues to deliver record breaking audiences for Paramount plus and works.

Spending our coverage internationally Paramount plus recently landed English Premier League right from Mexico, and Central America.

In Chile, Paramount plus will scream that Chilean national football team qualifying matches for the 2026, FIFA World Cup and Paramount plus and network 10 will present, the top Australian leagues and the Australian National team matches in territory Paramount plus also is the home of the full C. B S News port.

Polio. This includes our recently rebranded 24, seven screaming New service double feature new original programs from C. B S. As top on your news talent, a slate of upcoming darkness series from leading journalists and filmmakers as well as on demand access to the networks iconic news franchises now.

As Bob said, one of our key Differentiators is a broad collection of businesses from television to theatrical working together to drive global Screaming. Our company is the world's biggest broadcast footprint with powerhouse networks around the world, including the top rated broadcaster in Argentina telephone.

<unk>, the top network and chili chili busy on channel five in the U K and Australia is network Tech each network offers up a powerful owned marketing platform with massive reach to fuel the growth of Paramount plus.

On C. B S. For example, we promote Paramount plus and every hour of network programming last year. It added up to 4 billion on your impressions and 1500 spots across C. B S. R.

Our networks continue to produce hit after hit hit that by new audiences unparalleled plus all over the world. One of network turns most successful Australian drama series five bedrooms moved to Paramount plus five bedrooms is now one of the biggest shows on the service helping to drive early subscription growth in Australia.

Where are we vastly exceeded our subscriber estimates Latin America. Our teams also are turning local broadcast hits into Paramount plus original like the Mega hit Master chef on telephone spinning off into hands-off chef on Paramount plus two.

Two C. B S series evil in seal team became Paramount plus original as last year and quickly became two of the most watched the original series on the service in the U S. They both have been renewed for another season and today, we're excited to announce plans for a seal team movie event exclusively for Paramount plus now.

We continue to add C. B S hits on Paramount plus from dramas like F. B, I, which has vaulted into one of the services top shows to comedies like goes which is the number one new comedy on broadcast and the number one comedy series on Paramount plus from Prime time Entertainment to news to NFL on C. B S.

Bottom line different audiences watch premium content in different ways, we can draw the biggest broadcast audiences and engage a unique an additive audience on streaming as we continue to grow Paramount plus and build more franchises and C. B S will take our globally popular franchises and turn them.

I'm into local Paramount plus originals today, we're announcing N C I S C.

A uniquely Australian spin on the hit U S show coming next year to Paramount plus in Australia. The New series will be filmed in one of the world's most scenic harbour cities. It will feature local stories and local creative talent, including Shane Brennan creator of N C. I S. L. A who's an Australian himself it all adds up.

To the very best and live sports breaking news key entertainment franchises and broadcast networks, driving Paramount plus with audiences all around the world.

Now I'd like to pass it over to my colleague and friend Chris Mccarthy.

[noise], Thanks, George and Hi, everyone I'm, Chris Mccarthy, the chief content, all surfer adult animation and reality programming for Paramount plus and I'm excited to.

Be here today to talk to you about both genres as well as the global power of IP adult animation and reality content share a lot in common.

<unk> life characters outrageous situations and laugh out loud moments that resonate they show exaggerated truth that we can all relate to and that's why they're so incredibly popular all over the world and they both hold a special place for US were credited with creating reality T V with the launch of the railroad and with South Park, and Beavis and Butthead we.

Help to bring adult animation into the mainstream and around the world over 25 years ago.

And to this day, where global leaders in both and as the accelerated expansion with Paramount plus globally or doubling down.

Let me give an example jersey shore wasn't instant phenomenon when we launched it in the U S. So we franchise date with local cast all over the world without could polka sure and Rio sure we use them to launch Paramount plus in Mexico, and Brazil, and they quickly became the number one series in those markets and I'm excited to announce today that we're redoing both of those.

Ares and to further accelerate our lunches globally, we're adding seven new shores around the world you see this is one of our global competitive advantages globally, no reality I P. With local cast executions. It allows us to customize are offering in new markets with incredible efficiency now that's what I call a sure thing that.

That takes me to the challenge the iced tea that created reality competition is now about to create a new reality first behind me is the location in Argentina, where we're shooting the first ever globally connected competition series and because it takes place in one location, we're creating five series for nearly two thirds the cost take a look at the <unk>.

Challenge for the World.

[noise] the franchise that created unscripted competition, where sports and reality collide.

[noise] hostile cut throat.

Is going.

It's the challenge of the World a two part worldwide tournament with you theories and four different countries.

And any guy.

Yeah, I'm more than happy.

Whereas the biggest reality athletes battle it out to be named their country's champions.

And it's all on Paramount plus and our bore biggest broadcasters around the world.

Then the winters in each country advanced the park to streaming exclusively on Paramount plus also crowned the first ever challenge World champion.

The next evolution of global reality competition, it's ear.

The challenge war of the worlds streaming exclusively on Paramount plus.

And that's just the beginning take a look at the scope and scale of what we have going on.

It truly puts us in a leadership position now, let's talk about the power of adult animation.

South Park, and Beavis and Butthead are some of the most beloved and universally recognised eyepiece in the World last year South Park was the number one adult animated series in the U S and around the world over 50 billion minutes of the show was consumed which means at any given time more than 100000 people are watching South park, Adam throw the say as we celebrate the 25th.

The anniversary series is coming home. It all started lasher as we launched two new streaming movies on Paramount plus which were top performers in the U S and number one in our international markets and that will build on that momentum with two new South Park movies every year for the next six years and I'm excited to announce here for the first time ever that Paramount.

Plus international will become the exclusive home to the full South Park Library, a 310 episodes as we launched the series of this year plus starting in 2024, new episodes of the South Park series will have their U S and international stream premieres on Paramount plus followed by the full catalogue coming home to the U S. In 2025.

Making paramount plus the global exclusive as far as home to South Park now we're also welcoming home Beavis and Butthead. This July with a brand new movie set 20 years into the future, which is sure to reignite the franchise for old and new fans alike, and we'll build on that momentum with a new series set in the present day. Those are just a few of the great animated projects.

We have coming as we continue to build out our global IP to power Paramount classes expansion.

Now speaking of the power of IP to attract and capture of millions of fans last year Yellowstone became a phenomenon not just in the U S where it's number one on linear but also internationally were Paramount plus is it's F at home to build on that momentum we franchise. The series in real time, starting with the origin story 18 83, it just launched into.

And it became an instinct global hit in fact as you heard earlier from Tanya It is Paramount pluses biggest hits ever clearly, we're only at the beginning of unleashing the full potential of this IP in here to tell you more about that as a creative partner Taylor Sheridan.

<unk>, how do we reinvent the wheel again, what's the next thing we wanted to you know we're in an interesting time and scripted drama and T V. Because everyone is attempting to find this new way in to tell a story and I've done it with all my shows where I looked at a forgotten part of the American experience.

<unk> is an extraordinary writer I love Terry was writing, there's an intensity to a there's a urgency to it we have a lot of trust and and.

Love for each other as artist so.

I have to meet.

With Yellowstone I had built out this back story of where the Dutton family came from and with 1932 I chose that moment in time to peek back in because you're seeing the children. We've met in 18 83 now attempting to raise another generation of Dutton at a time of the wild west becoming a playground for the elite from the east.

And as far as best Reeves goes that's a parallel world. The 18 eighties vast Reeves who's the first African American martial west of the Mississippi policing the entire Oklahoma territories, when I'm casting I'm seeking the great actors of our generation and David a yellow is because I once a generation talent to look at account until like bass.

Reeves I mean this is the guy the Lone Ranger was based on who got whitewashed Apple history, and I, just can't wait to get on that horse and to tell this story.

I Wanna go get movie stars and opportunity to work with someone like Stallone. They just follows this model.

The total switching is a very interesting story, if he's a lifetime gangster. He took the fall for his bosses and went to prison for 25 years kept his mouth shut and nobody comes up next thing you know he's in Tulsa.

He has it I'll start a new life create a gay because they want him to be earned her and that's when the fun begins what I try to do is peek as authentically into a world as I can lionesses, an actual program between the C. I, a and special forces that truly no one knows about Nicole Kidman came to this project very or.

Early on once I'd written the pilot and was so moved by it she wanted to be involved as a producer we have cast Zoe Saldana and this is a deep dive in the way with which espionage and the military have blurred.

I love to explore the richest most invigorating stories and I just want to work with those people, who I've admired and with land man I developed at for Billy Bob <unk>. He's a crisis manager for an oil company. It's about the world of the oil business that we generally don't see when you see running that good that really excite you.

I want to continue to make long form films that we're showing in one hour increments Paramount had the same vision that I did they're recognizing that what we're creating a special and they're giving us the resources to do it and that's a great partner.

[noise] [noise].

David Nevins Chief content officer of scripted originals for Paramount plus behind me as a London sound stage, where we make the kind of global scripted original that are helping to power Paramount plus we make shows the resonate across the country and around the world and we make them in every market for every market. It's a two way street.

<unk> with U S made shows that we're rolling out around the world and internationally produce shows that were bringing to the U S and markets everywhere, we are creating groundbreaking new I P. Even as we lean into the franchises that fans love and we bring the highest level of acting writing and cinematography the best of Hollywood everything we do the results.

Is the entertainment that's addictive, it's what enticing subscribers and keeps them coming back for more the kind of shows you can relax with on a Saturday afternoon, or just before bedtime and the kind of shows that can fill the call for suspenseful Friday night at home take the offer one of Hollywood's Wilder stories, how the iconic film the godfather almost didn't he.

But it's a riveting limited series starting miles teller, Juneau Temple, Matthew good and Giovanni Ribisi, Here's a pic look.

We want to make a movie.

Okay.

And I actually never seen before and then we'd better get started.

I know how to make this film.

It's a metaphor for the American trees.

This is not just some gangster film.

So is it like a joke.

A business. This is a story about family.

It's Shakespeare agencies won't touch.

And you wanted to introduce a bank file still do whatever it takes.

<unk> movies are dead.

My stamina handle something going ahead.

[laughter].

Sinatra wants us to shut the picture now.

Brains and you got a.

Chinese.

Okay.

[noise] what are they are opening line.

I believe in America.

[music].

Next comes Greece rise of the Pink ladies a splashy musical prequel to a classic film with proven multi generational appeal, but updated for today with cutting edge music and choreography have a look at this just produced dancing.

[music].

And coming later this year, we've got Kiefer Sutherland and an edge of your seat psychological thriller Rabbit hole from the creators of the good fight an evil comes the true story of a woman who realizes her father was the infamous real life happy face serial killer and titles from the Paramount Library ripe for updating like fatal attraction starting Lizzie can.

Kaplan and Joshua Jackson for US, it's absolutely essential how well. These shows will play internationally because Paramount plus is designed for a global audience. Just tell you more about our international production plants, let me throw it over to my London colleague Maria Kiriakou.

Thank you David as you said Paramount pluses, a truly global service in every way.

All production capability spend more than 20 countries from Argentina to Israel to my home here in London, giving us an incredible advantage here.

Here in the UK, we are thrilled to launch Paramount plus system, bringing all our shows and movies to British audiences.

And bringing the remarkable talent that we have here to a global audience.

From a dramatization of the New York Times, Best selling novel, a gentleman in Moss Gateway prequel series of the British cult hit Sexy Beast. We're excited about what's instill as we expand timeout person to global markets. My colleagues around the world are crazy new content like how first Italian original Miss the Laci on a three less in Germany, the chemistry of death.

And we're expanding our partnerships with international groups, including C. J Entertainment to South Korea, and production company behind parasite, starting with a thought provoking you drown that yonder in fact, we already have more than 15 <unk> International original planned here's a quick look.

There was something I wanted to study.

Tell me what happened.

Absolutely.

So that they can get.

[noise], Okay, if for some reason.

Okay.

[noise] and what else.

Alright.

<unk>.

[noise] snakes.

Okay.

Probably in the familiar yeah Benito.

As a company, we've all say become a leading producer of Spanish language content with Kelly favorite Argentina in the recent acquisitions television Kelly Columbia, and a studios, telling Mexico, we premiere raise a 5000 hours of content pay here and we use that.

[noise] scale to drive Paramount plus needing into hit shows like Los <unk>, and Cecilia, which I can confirm that and picked up a second season and he used to tell us about the new romantic comedy at midnight is incredibly talented Monica bump alright.

Thanks Maria.

After playing a fighter pilot by the name of Phoenix, and Paramount's highly anticipated top gun Maverick with the legendary Tom cruise.

I'm thrilled to stay with the family at this very moment I'm in Mexico shooting a beautiful new film with Diego Verneta called at Midnight, which tells the story of Sophie and Alejandro too ambitious people, who meet at the right place, but the wrong time I play a career driven movie sorry, with a seemingly glamorous life and my world Collides with Sally.

<unk>, who until now has lived his life according to thought out predictable plan.

It's been an incredible shoes, so far and we can't wait to share with you. The magic we've gotten to experience onset every day. Thanks, Monica simply put retailed, great stories that transcend all countries and cultures.

My favorite to you David Thank you Maria as Maria said, the beating heart of what we do is tell great captivating stories stories that move us provoke us and make US think stories that you can't stop talking about it with hits like your honor and yellow jackets not to mention the huge worldwide success of the Dextra Revival Showtime has been a great.

[noise] producer a fear of missing out series that become worldwide sensations series, the dominate the cultural conversation and serve as a cornerstone for our Paramount plus service in markets around the world and.

And as Tom said earlier. This includes U S subscribers will soon be able to easily access Showtime within Paramount plus looking ahead, we couldn't be more excited about these global hits in the making the first Lady and intimate view inside the lives of Michelle Obama Betty Ford and Eleanor Roosevelt, starring Viola Davis, Michelle Pfeifer and <unk>.

<unk> Anderson take a look.

Can I ask you something.

<unk> at a time.

[noise] welcome to the White House, Ma'am, ma'am, that's gonna take some <unk>.

[music]. They wanted turned me into a blast Martha Stewart.

And your Ministry.

Yeah.

You know.

Linda Hawaii, who has a life of no.

[noise] I'll be here for Ya.

Going to be my account.

[noise] Memorial is always gonna be judges.

[noise] alright, they'll kick me out and they can't make me somebody on that.

From the creators of billions comes another show from their universe exploring the contours of capitalism, it's super pumped the battle for Uber. If billions is about the masters of that universe Super pumped is about the entrepreneurs here's a preview my name is Travis I am the founder and C E O of Hoover.

And contrary to what you might have read I'm not a monster.

Okay.

No that's all I have.

Be willing to listen to lifestyle I'll always listen.

But I will never take orders.

The zip.

Legal [laughter] the best thing about Travis is that he is willing to run through walls to win.

The worst thing about him is he thinks everything is a wall.

There is something that's gonna kill over then I have to remove it Sergey Brin, Tim cooking Uber disco.

When he used to be the street.

Yeah.

My life is on the line here.

You.

I can believe alright.

Oh wait.

[noise] and I'm excited to announce there were already at work on season, two of Super pumped, which is going to be about the rise of Facebook and today. We are also ordering season seven of billions on the horizon, We had the iconic American Gigolo, starring John Byrne fall, let the right one in.

An adaptation of the Scandinavian Vampire saga, starting Demyan, Bashir and Ripley, a sumptuous take on the classic Patricia Highsmith mystery of an American tourists, whose visit to Italy is interrupted by accusations of murder premium shows huge stars addictive stories with global appeal. This is what it looks like when we.

Supercharged are content engines to create shows the world can't get enough of all on Paramount plus and we're just getting started now let me turn things back over to Bob.

As you can see across every genre lane Paramount is reaching new heights with our powerful content engine.

And that engine in turn is creating a compelling value equation opportunity for the company.

Here to share more details on that please welcome our Chief Financial Officer Devine Chopra.

[music] thank Bob.

Hello, everyone.

This afternoon my colleagues have explained how we plan to take our flagship streaming service to new Heights.

Now I'd like to explain how that strategy is driving our financial results today and into the future.

I'll start by sharing a few highlights from our queue for results and recapping the remarkable year, we had and screaming.

Then I'll talk about the future.

Starting with changes in our disclosures, which are important to understanding our future financial goals.

I'll explain how are differentiated streaming playbook translates to a financially attractive business with healthy long term margins.

And then we'll put some specifics around all of that with updates on our long term goals and expectations for 2022.

So let's start with our queue for results.

Which are covered in greater detail in a press release, we issued earlier today.

We added 9.4 million screaming subscribers in queue for reaching a total of 56.1 million global subscribers across our services.

Paramount plus continue to drive the vast majority of new subscribers in the quarter.

But Showtime O T. T also had a record quarter of additions.

An AD supported streaming Pluto T V continued to thrive delivering its biggest quarter of M. A U growth by adding 10 million M. A us to reach 64.4 million and May use global.

In combination.

Be services powered a another quarter of exceptionally strong revenue growth.

Global streaming revenue was up almost 50% year over year to 1.3 billion.

Benefiting from strong subscription revenue growth, which accelerated yet again to an impressive 84%.

At the same time, we saw continued strength in our traditional businesses.

With growth in both advertising and affiliate revenue.

Our balance sheet also strengthened in queue for what we sold non-core real estate assets and ended the year with 6.3 billion of cash on hand.

Our net debt balance now reflects a 7 billion dollar reduction since the merger of by a common C. D S.

And provide ample firepower to seize the tremendous streaming opportunity before us.

And speaking of streaming.

As you've heard throughout today's event.

2021 was indeed remarkable.

Less than a year since the launch of Paramount plus our content marketing and distribution engines drove explosive growth, adding more than 26 million global screaming subscribers across our platforms in 2021.

In turn streaming subscription revenue grew nearly 80%.

We know that kind of growth relies on great content to attract and retain a broad base of subscribers.

And we're seeing the formula working.

Fact, if we look at our domestic Paramount plus business.

As content selection expanded the average monthly active right moved higher in each of the past three quarters since launch.

And his audience I spent more time with the service.

Turn also improve each quarter during the year.

Ms engagement and retention inquiries, so does the lifetime value of Paramount plus subscribers.

And to underscore what Bob and Tom shared 2021 was also an out of this world year for Pluto T V.

In addition to crossing the billion dollar revenue threshold Pluto T V experienced tremendous growth and users and watch time.

Total global viewing hours increased over 50 per cent to 4.8 billion, while viewing hours per domestic I may you grew a healthy 12%.

And a moment I'm gonna explain how our performance in 2021, Guy's our expectations for future screaming growth.

Before doing so let me explain changes were making to our financial disclosures, which will improve the visibility of this direct to consumer growth.

While highlighting the profitability of our traditional business.

Today, we publish recast it trending schedules on our website presenting historical results through the lens of our three new segments as shown here.

First a highly profitable and resilient T V media business.

Which include our global broadcast and cable network businesses and their associated studios that were reported separately in our legacy T V Entertainment and cable networks seconds.

It also includes Paramount T V Studios, which was previously part of the film Entertainment segment.

Second filmed.

Filmed entertainment, which is comprised of the Paramount Pictures and Nickelodeon Studios.

And finally, a high growth direct to consumer business, which includes the global operations of our DDC streaming services consisting of Paramount plus.

<unk> T V Showtime O T T B T plus and noggin.

All in one segment.

Taking a closer look at our segments under the new reporting structure, you'll notice the profitability of our T V Media segment, which generated nearly 23 billion in revenue and close to 6 billion and adjusted OIBDA last year.

T V media OIBDA was up 1% year over year and delivered a 26% OIBDA margin.

In our day to see segment revenue grew an impressive 83 per cent.

And as you know we continue to invest behind this rose to capture a highly strategic market opportunity.

And as a result of this investment.

D C operated at a loss of approximately 1 billion in 2021.

In addition to changes in our segment reporting will also evolving our revenue disclosures.

Our new reporting segments feature for revenue types.

Advertising affiliate and subscription.

Theatrical and licensing and other.

Our streaming revenues are now captured as advertising or affiliate and subscription revenue in either the DDC segment or the T V media segment, if not directly related to our DDC services.

And to offer a closer look at direct to consumer we will also be publishing revenue and subscribers or monthly active users for Paramount plus and Pluto T V respectively.

As shown on this chart by year end 2021, Paramount plus had 32.8 million global screaming subscribers.

As Bob mentioned, Paramount plus has been the key driver a subscriber growth representing over 80 per cent of the 26.2 million global screaming additions, we gained last year.

Paramount plus generated 1.3 billion in revenue in 2021 up 115% year over year.

Domestic paid <unk> approach $9 in queue for reflecting a mix of essential premium and promotional subscribers.

In 2022, we expect both domestic <unk> and international <unk> to move higher.

Domestic our pool will benefit from improved add monetization and the conversion of trial of promotional subs to full paying sauce.

An international art, but will improve too as we launch in large international markets with significantly higher average or booze than our current international sub base.

And on Pluto T V. You know no we added over 21 million global M. A used in 2021, delivering almost 90% top line growth that's 1.1 billion in revenue.

In the U S pluto's efficient business model and impressive <unk> growth demonstrate increasingly strong margin potential.

In fact, Pluto T V's global are poo inquiry, 17% year over year to $1.64 with.

With domestic or poo significantly higher at $2 54.

Up 44% year over year.

Well also simplifying the way we record direct to consumer content expense.

To more clearly present, the actual cost to the company of our streaming investments.

We are no longer recording intercompany licensing between segments. Instead, we're allocating content cost each segment based on the relative value of the distribution windows exploited by each reporting segment.

What does this change mean for D to see investment.

Well under our new reporting structure DDC content expense would have been about 1 billion in 2020 and 2.2 billion in 2021.

We think this combination of changes makes it easier to understand and value the future Paramount.

It's a future we are very excited about because it leverages the assets from our traditional media enterprise to build a large scale global direct to consumer business with attractive longterm margins.

As Bob laid out streaming unlocked a tremendous incremental market opportunity for paramount compared to pay T V.

In fact relative to our existing pay T V footprint, which reaches 300 million households are.

Our streaming strategy, which is more than double that amount to well over 600 million broadband homes.

Excluding China and India.

And this number will continue to grow, especially when adding mobile broadband users. A previously inaccessible segment will soon be targeting with a mobile only plan for Paramount plus in certain geography.

Our broad approach to streaming positions us to capture an even greater portion of this growing addressable market with better long term economics.

Let me is three examples from our playbook to explain how our approach yields financial benefits and creates long term value.

First.

Within Paramount plus and Ah Cross our ecosystem we've.

We benefit from a combination of subscription and advertising revenue.

This gives us multiple ways to grow beyond just subs in place.

Our dual revenue stream model allows us to grow our food through enhanced engagement and monetization.

And we can reach an even larger audience by appealing to the hundreds of millions of consumers, who prefer to pay a low or no subscription fee for their content.

Advertising is powered the media business model for decades powered broadcast television has been essential to cable television.

Today.

As we look ahead to the future it adds incredible value to our streaming playbook.

As part of a hybrid subscription AD supported model like Paramount plus.

And as a pure as supported service with Pluto television.

Second when.

When it comes to distribution were also running with a differentiated playbook combining the top notch consumer experienced in massive addressable market is streaming would be attractive economics of the traditional cable model.

At a time, where our partners are focused on using streaming services to further leverage they're brought in presence and expand customer offerings.

Take our hard bundle deal with sky or the deal we announced today with can all please <unk>.

<unk> Paramount plus is instantly distributed to millions of sky cinema or cannot please customers.

While our poo is lower than in our direct to consumer channel, it's higher than linear T V subscribers scale very quickly we.

We incur no customer acquisition billing or support costs.

And we eliminate the risk of churn when series, which end of season.

This play is enabled by our long standing relationships with global M V P DS and the differentiated value proposition a paramount plus.

And of course, these hard bundle relationships, let us maximize reach by complimenting our higher R. P direct channels and customers, we acquire through streaming platforms like Amazon Roku and Apple.

Third.

We have a unique opportunity to leverage our content investments across our blog platform.

It's the perfect illustration of how our so-called legacy businesses and.

Enhance streaming economics.

And it's not just a hunch.

We measure return on investment on a show by show basis.

Unlike a pure play streamer, our R. O Y equation benefits from broad platforms like box office revenue Pluto T V third party licensing download to own and consumer products among others.

Coupled with a lifetime value of each Paramount plus customer directly attributed to the title. This diversified model consistently demonstrates compelling roy across many popular Paramount plus releases.

Which brings us back to a differentiated screaming playbook.

These monetization opportunities improve the return on streaming content.

And are not available to a pure play streamer and.

An hour model. These traditional businesses are powerful sources of economic and promotional value.

While high <unk> high impact Paramount plus exclusive.

Mayor of Kingstown, and 18 83 are important to our growth.

They are only part of our success equation.

Paramount plus is also powered by a deep portfolio of both shared and library content.

With strong momentum in our direct to consumer business and a differentiated streaming playbook.

We're confident that the opportunity ahead is as Bob said matched only by the scale of our ambition to season.

Just one year ago, we set a goal to reach 65 to 75 million global screaming subscribers by year end 2024.

We now expect to surpass that goal by the end of 2022.

Two years ahead of schedule.

Today, we are raising that goal to over 100 million global DDC subscribers by year end 2024.

This excludes subscribers, we expect to serve with Sky, Showtime, which will be reported separately by the J V.

I put a T V engagement and <unk> have accelerated meaningfully in the past year.

Increasing our ability to monetize the hundred to 120 million global M. A use we expect to reach by 2024.

And this combination higher subscribers and <unk> as well as accelerated monetization improvements at Plu T V.

These are goal for 2024 D to see revenue.

Has increased substantially.

Last year, our goal for global Screaming revenue was to exceed 7 billion in 2024.

As you can see on the right side of this chart that included 6 billion of revenue now captured in our D to see segment with the remainder being digital video advertising now cats are in our T V Media segment.

As a result of our momentum and incremental investments we are raising our 2024 direct to consumer revenue goal to over 9 billion.

That's 3 billion higher than the 6 billion, which was embedded in our 2024 revenue goal just one year ago.

The incremental D to see revenue consists of both more aggressive subscriber assumptions and Arco improvement driven by the combination of subscription price increases and growth in advertising monetization.

Now of course, our growth depends on delivering killer content.

Last year, we told you we expected streaming content expense to exceed 5 billion in 2024.

This included 4 billion of expense associated with our direct to consumer services.

We now expect <unk> content expense to grow from 2.2 billion last year to over 6 billion in 2024.

Given these investments we forecast D C. OIBDA losses will be greatest in 2023, but will improve in 2024, when our global D to see businesses will start to see the benefits of our full contents late including Paramount pay one movies.

By then will be launched in significantly more markets.

Advertising and subscription monetization will be higher.

And the layering of content amortization expense will begin to stabilize.

And longer term our model suggests with the <unk> segment will approach margin similar to our current T V media business.

I also want to provide some color near term expectations for each of our segments in 2022.

At T V media, we expect adjusted OIBDA to be similar to 2021, when adjusting for the benefit of Superbowl 55, and Q1 of last year.

Similarly, we expect adjusted OIBDA, a filmed entertainment to remain stable year over year absence changes to our current films.

And indeed see we anticipate a another year a very healthy subscriber growth led by Paramount plus and continued expansion at Pluto T V.

All of which will translate to D to see revenue growth in excess of 60% for the full year.

In fact, we expect D receive revenue growth in Q1 to accelerate beyond 2021 full year D to see revenue growth.

As we grow direct to consumer will see additional investments in content and international launches.

As such we anticipate an increase in OIBDA losses of approximately $500 million for the DDC segment in 2022.

On a total company basis consolidated OIBDA will show sequential increases in each quarter of 2022, including Q1.

Regarding the year over year trends the first half of 2021 incorporated several noncomparable items, which benefited OIBDA in the period, including the superbowl the impact of Covid on linear production and film releases.

And the launch of Paramount, plus which did not occur until March 4th.

Therefore, the first half of this year will show a material year over year decline in OIBDA, which will then flip to a significant year over year growth in the back half of the year, resulting.

Resulting in the full year trends I just described.

We've covered a lot of ground today and I know everyone is looking forward to the Q&A session. So on behalf of my colleagues, let me recap for key takeaways.

First in just one year Paramount plus has outperformed all expectations.

We have serious momentum and the credibility to establish ourselves as a scaled streaming player.

Second.

We are enhancing transparency.

We want you to see and understand the evolution of both R. D C and traditional businesses.

Third.

We are taking our ambitions to new heights.

We're investing in rope.

Which significantly higher goals, the streaming subscribers and streaming revenue.

Four.

And most importantly.

We are executing a differentiated screaming playbook that leverages, our traditional businesses to yield faster growth and attractive longterm D to see margins.

With that let me introduce Anthony Diclemente Executive Vice President Investor Relations to lead us through Q&A.

Thanksgiving and thanks to all of you for joining US here for today's discussion we have Bob <unk>, our president and CEO moving to Oprah, our CFO and Tom Ryan President and C. E. O of streaming I also want to note that slides from today's presentation will be available on our website. After we conclude.

We're going to spend the next 30 minutes answering your questions are analysts are joining us by zoom in order to help us get to as many of your questions as possible I'd like to ask that you. Please limit yourself to one question.

With that let's open the lines.

Our first question will be coming from Mike Morris at Guggenheim. Mike Go ahead with your question.

Thank you Anthony and thank you for for all of the information you guys. Just shared Uhm I guess with my one question I'd I'd like to ask you about the the path to the subscriber guidance that you have out there the hundred million by 2024, Uhm can you share any more details with us about what that path looks like.

Over the next couple of years, whether they're a different milestones that would accelerate or or you know cause choppiness and and in that path and can you give us any more details about how you see the geographic mix about subscriber base evolving. Thanks.

Sure I might get survey and I'll take that question.

In terms of how we see R. D C business grow into 100 million. We do think there's gonna be some relatively steady growth over the next few years, if I were to break that down a little bit more I'd say a couple of things number one in 2022 as I mentioned on the call.

We do expect that we will exceed our prior guidance for 2024 sets in in saying that we mean exceed the high end of that guidance. So that gives you some sense of what we expect to see in 2022, and we expect a a healthy rate of growth to continue in 2023 and 2024.

In terms of the geographic composition of subs, we obviously have global ambitions, which means that we expect both domestic subs and international subs to be important contributors to achieving that hundred million sub goal.

If you think about our D to see subscriber base today, it does skew domestic.

But as we progress and as we launch Paramount plus in more markets.

The portion of overall subs that is made up from international will continue to grow if I look forward to 2024, I would expect that domestic will still be the larger portion of our base, but you will see quarter is over the next year, where the skew of new subscriber edition.

<unk>, maybe either domestic or more international two four as an example, where we saw a tremendous growth was heavily driven out of the United States, but there will be quarters next year, we launch a new markets, where we launched new partners, where more of that growth will skew international but in the long run both domestic and international I was gonna be it.

<unk> cause at the end of the day, we're building a global DDC business.

Mike the only thing I want to add is that hundred million number does not does not include subscribers. We expect from Sky Showtime, that's an unconcealed at a joint venture and we we obviously expect that to be in the many millions of subs.

Yeah, the queue for sub growth was skewed domestic to be clear. Thanks.

Thanks, Mike we'll take our next question from Brian Craft from Deutsche Bank. Brian Go ahead with your question.

Hey, Thanks, Anthony Uhm pay to be in Hey, Bob give me can you just size the free cashflow investment and streaming investments over the next couple of years or or maybe talk about the delta between EBITDA and free cashflow and when that might peak just so we can help the model you know help us model that.

And you know Bobby you doing Chris Mccarthy, I've talked recently and Chris talk today about emphasizing the company shipped shipped to leveraging franchises in a bigger way can you talk about you know how that is going to really be different.

Going forward then it's been historically and you know what that you know what that means for the business and what you've seen so far and what gives you. The conviction that that's gonna you know really carry the subscriber growth that you're forecasting over the next few years. Thanks.

Hey, Brian So the answer on free Cashflow I think is relatively straightforward. If you think about 22 as an example, with giving you some sense of what to expect on earnings I think the year over year change on free cashflow will actually be more moderate than the change in earnings and the reason for that is that we are.

Seeing the benefit of significant working capital improvements that we've been able to make over the course of the last year and we expect to continue to do that so while there'll be incremental investment from an earnings perspective castle impacts would be a little more moderate Bob yeah with respect to your question on franchises, we are absolutely increase.

<unk> R focuses on franchises with respect to our content investments think if you look at the company historically, probably most of that franchise work was done at Nickelodeon and you sauce look to move quickly and benefit from that in the launch a paramount plus with a sponge Bob movie in the first Spongebob.

Spin off series camp Coral since that time, what you see is brought including today. What you see is a broader commitment to franchises, including strategies, which span uhm theatrical to series you heard that today with respect to Sonic you see that with respect to Yellowstone spawning 18 83.

And you know we have a whole range of these in place. So it's really a philosophical change that connects with a one company mentality that crosses platforms and feed streaming that is a step function change and are embracing franchises.

Great. Thank you, Brian we'll take our next question from Brett Feldman at Goldman Sachs. Brett go ahead with your question.

Great can you hear me Okay. Yeah, Yeah, we can hear you fine.

Okay. So when you had outlined your initial expectation that you'd be growing your content spending that you're allocating isn't it Ah screaming business at the time from billions and 5 billion you'd indicated that that was not necessarily all going to be incremental to the company. You've obviously had a tremendous amount of success with streaming contact since then and you've come out.

Signal Ah desire to invest even more so the question would be uhm that additional 2 billion that you outlined by 20th 24 to what extent is that purely incremental and to what extent does it represent medium slipped through reallocation away from your traditional television media business and just any more color you can.

Give us about what's driving that that additional investment other than just more content. For example are you gonna be needing a bit more into local language content outside the U S.

Yeah, Hey, Brett Uhm, let.

Let me try to give you some additional color on that and I think you know the the essence of the question you're asking is really what happens to total company contents then in combination with the incremental investment, we're obviously, making N Z to see.

And the answer to that is the following while we're investing aggressively in the day to see growth.

We are also carefully managing spend in the traditional side of the business and that applies to both content investments as well as looking at other opportunities to unlock operational efficiency, you've actually seen us do that quite extensively over the last couple of years, whether that's doing things like combining networks or looking for.

Ways to find other efficiencies in operating expense.

You know, we think we've been quite innovative in being able to do that and you'll see us continue to pull those levers going forward, you'll also see us lean even more aggressively into leveraging global production, which has significant benefits in terms of.

Helping us create costs excuse me create content much more efficiently.

Take as an example, some of the things that Chris Mccarthy mentioned that he's dealing with shows like the challenge by leveraging global production capabilities.

So that formula is going to be a critical part of what allows us to run the business with total company contents, then that is growing at a much much lower rate then what you'll see on the <unk> size and it's also a critical part of the equation to returning the company too.

Two earnings growth in 2024 and beyond.

Local language content investment yeah, so with respect to local content global content. We are strong believers in the importance of local content I'd point out. This is not a new concept for us we've been operating in geography around the world for most of.

Our history is as Bob pointed out and we see tremendous opportunities to leverage a lot of the local content that already exist as well as combining that with global conscience in the U S that travels well we've had many examples of that whether it to Yellowstone or Dexter we also utilize.

Global formats, you've heard about that and Christmas presentation, as well and we're also now increasingly taking content that's produced in international markets and bringing it back to the United States. So there's many opportunities to take advantage of our global footprint and that is all part of how we have thought about our car.

To an expense overtime. So when we talk about the 6 billion.

A b C content investment in 2024 that assumes a mix of both global content and locally please contact.

Great. Thanks, so much Brett we'll take our next question from Ben Swinburne at Morgan Stanley Fine go ahead.

Thank you good afternoon.

Bob since you came to Viacom you have taken a new approach to distribution partnerships, which are obviously critical to driving direct to consumer I'm wondering if you could talk about your strategy based on what we heard of this afternoon to leverage distribution partnerships internationally.

And in the U S and maybe you can in your answer address some of the concerns investors. They had about your ability to maintain you know your <unk> your pricing powers and carriage position in the U S. Given how profitable that businesses. Thank you sure.

<unk>. So look if you look at the history of the company you see that we've long been a believer and ubiquitous distribution and executed in that way and so as we look at the data C. Space. We believe ubiquitous distribution is a powerful lever to pull to drive access to largest potential <unk>.

I'm now in doing so we believe you need a <unk> strategy was really multifaceted and this is where you see us pursuing hard bundles channel stores and pure D to see in each of the strategies have different characteristics, but in totality, they're very powerful so on the hard bundle side, notably.

<unk> exemplified by Sky and by the Canal. Please feel we <unk>, we announced today you know there is an opportunity to get very quick sub base had him very low <unk> subscriber acquisition costs with minimal churn going forward. So we liked that a lot as we begin to build scale you look at the channel Star.

Or a side that provides access to a flow of traffic uhm, you're paying a little bit higher cost of sales, but again, a nice chunk of users and then you get D to see which gives you the highest star Poo and gives you access to the full marketplace. We think that put together creates the highest growth sub base with the most <unk>.

Billety overtime, and again allows us to work with partners of different shapes and sizes and building our streaming business you see if doing that by the way in the United States to you know, whether that's working with an M. B P D where we've broadened our relationship to include not just linear channels not just advanced AD sales, but also streaming app's, including.

Free and pay you see is doing that with now with mobile carriers like a T mobile where we launch Paramount plus late in 21, and I'm looking forward to marketing kicking me and at the end of the first quarter to will really begin to drive that sources subscribers and then later billing integration in the middle of the second quarter or so.

You know we think these powerful these partnerships are very powerful and we're committed to leveraging them as we pursue this ubiquitous distribution and penetrate the largest addressable market. So I hope that helps.

Do you want to address M. B P D as in the U S alright.

Well I <unk> I discussed in the M. B P D. As if if you look at that just broadly speaking since we put this company together, we've we've consistently gotten deals done most recently with Comcast again those deals are now very contemporary in that they combine linear feeds vast AD sales and apps you know a very strong part.

<unk> was clearly a cornerstone content provider it and we look forward to doing growing business in that space, particularly as they go after broadband and leveraging their broadband account into video again, where natural partner of theirs.

Great. Thanks, so much been we'll take our next question from rich Greenfield that Lightshed rich.

Thanks, Anthony Thanks for taking my questions I've actually got a few I know you said, one but just real quick when I guess for Bob to start off when you say your platform is differentiated what do you point to most what do you think differentiates Paramount plus most from the other services that are out there too I think <unk> I think you said D to see margins.

[noise] approach linear margins I think that's a question that investors sort of struggled to understand just given sort of everybody paid for every channel versus just paying for what they want so like how does that mass sort of workout longterm and then just a quick housekeeping question. When you think about free cash flow. This year, obviously, you're free casually didn't cover your dividend and you actually.

<unk> <unk> net debt rise when you think about 22 and 23, how should we be thinking about those moving pieces.

Relative to the increased investment you just mentioned.

Yeah sure I originally kick it off so we absolutely have a differentiated strategy and streaming that differentiation occurs on a couple of dimensions, which I outlined it starts with content you know as I said, we take the plus an paramount plus very seriously we have the broadest selection account of content out there, including you know a full genre mix on the entered.

Payment side news and of course sports NFL European football Golf N C double a et cetera. So we think that's a real differentiator and we've seen all of those lanes work together to drive or go growth, including in the fourth quarter, where we're very pleased with the results. In addition to that we believe the combination of free.

And pay you know Pluto riding alongside Paramount plus is powerful and that will differentiate in that regard remember we have the number one fast product in the United States and based on the statistics I've seen our lead in the United States increased in the fourth quarter, even though we were ready the number one player third point, you've seen as how we're using.

Broader range of platforms to drive stick, we're doing that better than anyone else look at what we did with Yellowstone and to 18 83 look at the integration with a halo in the N F. L playoffs, we're really leveraging these platforms and lastly, the global side of this thing we've been operating on the ground internationally.

For decades, I believe with respect to the the distribution stride you have including hard bundles. We are an innovator. It is highly beneficial strategy, you'll see the benefit in 22 and by the way you're gonna see other people. Following us because we are already seeing that begin to happen, but just like we benefited by being the market leader in <unk>.

I asked him being there earlier, we're here early and you'll get a first mover advantage. So we got a lot of differentiation in place, it's working really well and it's gonna pay we'll dividends going forward Levine yeah. So rich the answer to your question first on margins is really an extension of what Bob describe which is that we are executing a.

Only different playbook when it comes to building R. D to see business and in fact, a lot of the things that we're doing actually replicate some of the economic benefits that you see in the traditional universe, specifically with regard to some of the things that you mentioned so whether it is the ability to leverage content it costs multiple platforms.

Whether it's the ability to use bundle and other partnerships to acquire subs efficiently and ensure that they don't churn the way that they might in a pure place you to see business, whether it's the ability to use our built him promotional platform or our global production capabilities, we're talking about a very.

Different version of screaming economics than what you would see in a pure play screaming business and that's why we think about the long term margin potential very definitely.

With respect to your question on free Cashflow I point out a couple of things number one as I said, we do thank the free cashflow impact of the investments that we're making is more moderate than what you'll see on the piano. Moreover, we have a very strong balance sheet as we.

Move into an greater investment boat in D. C. Over the next few years remember we finished the year with 6.8 billion excuse me 6.3 billion of cash on the balance sheet more than enough firepower to make the investments that we envision in streaming we have no near term maturities.

And we continue to maintain a significant amount of resolve the capacity. So we like our financial position, we're very well equipped to invest to capture the gross on on the to see and to continue to fulfill all of our financial priorities, which as I've articulated before include investing.

In organic growth through streaming it includes funding our dividend and it includes deleveraging our balance sheet I think you'll actually see us doing all three of those things in 2022.

Great. Thanks for the multiple questions Rich, we'll take our next question from John Hudzik at U B S. John .

Okay sometimes.

Two questions when they first I'm a licensed inside of you guys have shrunk content licensing, but at the same time talked about so I do pulling back from us to pay one window in a couple of years could you just talk about maybe to quantify the impact of that change and just maybe give you. Some color on how you expect that mine too to try and go to the next couple of years, that's number one and then.

A quick follow up just anything you can tell us about your appetite for for International Sports right I think Bob you guys need out uhm.

Do right you have in Mexico, and Central America with football and I think there's some new stores out Tonight essentially bidding on the I P. O and then do you have any thoughts around that rumor or new rights you guys could acquire the future yeah sure John to look on the content license inside as you know we've made a strategic pivot at buy Com C. B S now Paramount.

Two pointing our content engines at our streaming platform, notably Paramount plus we've already seen early benefit from that in terms of the fourth quarter and we believe that is fundamentally the right thing to do as we love to create asset value and there's clear examples of asset value creation in the streaming space, where you're successful and again we.

Intend to be successful so we're doing that in parallel to that we are continuing to fulfill deals we put in place pre Paramount plus so you know those are like season, and plus one of a particular show maybe Jack Ryan as an example, you know we have contracts in place and we're gonna continue to do that we also can do tend to do some selective nonexclusive.

Licensing, which we found to be an effective franchise development tool as we continue to build new versions of product again for Paramount plus so you should expect us to do that over overtime Uhm again, we think it's strategically right and we think we also have some incremental financial benefit.

From that in terms of your question on International Sports rights, but it's early days, but we've seen real benefit sports as part of Paramount plus in the United States. The N F. L. As you saw on one of the charge was the number one source of subscriber additions for the product in 2021, and we have found that we.

Can cross consumers, bringing me on sports and get them to consume entertainment product sports fans. As an example in the fourth quarter were also big consumers Uhm shows like C. L team in May of Kingstown, 1983, and that's T to our overall plan in economics in Ottawa. So we're looking selectively.

Adding sports product internationally, we've done some of that in Latin America, we've done some of that in Australia. The I P. L thing in India is really Viacom 18, which is our joint venture over there. So yeah. We think sports is additive and certainly a differentiator for us he needed to be disciplined in terms of how.

You pay and you need to be effective in terms of extracting the value including through co. You said your mother product, but sports is definitely part of our streaming playbook and by the way we have a lot of benefit from our C. B S Sports heritage as we pursue that opportunity.

Great. Thanks, So much John we'll take our next question from Jason Bazinet City. Jason Go ahead with your question.

Thanks, so much maybe a little bit of a complicated question, but <unk> under the old accounting standards, you know for film or television you would amortize based on you know matching revenues right as a percent of your ultimate revenues Uhm. So the margins are sort of a consistent all the way through and the streaming <unk>.

I think the amortization as a function of the strange and it sort of ignores the fact that the consumer gets more utility out of new content versus old. So how do you how how can anyone have confidence that the streaming business.

He's gonna be a is gonna be good if a business is your new T V Media segment as an example.

Hey.

Hey, Jason I'll I'll take a shot at that Uhm first just in terms of understanding the methodology on an allocation first very big picture as I said in the prepared remarks, our general approach to cost allocation is based on the relative value of windows that any given service.

Has rights to exploit so that address is sort of how we allocate costs between for instance, theatrical and screaming if a movie starts in the theater and then ultimately ends up on Paramount plus in terms of the allocation within streaming we actually don't.

Entirely allocate based on the methodology you describe there is a a recognition of the fact that content tends to have significantly more value in its early days on a streaming service. So a lot of the <unk> is accelerated and then spread out.

All the time.

It is one of the reasons why as we continue to build our library and symbol more and more content on Paramount plus we believe there is an opportunity for leverage and the model I mentioned in my prepared remarks, but one of the things that takes us through that inflection point of peak losses in D. C.

And 23 is the fact that we're then at a point in time, where we're actually starting to see things roll off from an amortization perspective as opposed to in the first few years everything's coming in nothing's coming out. So you really start to see the operating leverage improve in the business at that point in time I I also just want to add one other point cause something you said.

Not reflective of what we see in stream and you said that only new content matters in terms of screaming consumption. That's actually categorically not true. It is true that new original Archaeas subscriber acquisition, but what is tremendously valuable in streaming is library and specifically series that are deep and number of seasons, so you'll <unk>.

At the N C I S. As the F. B I the C. L teams, the Spongebob et cetera, those are tremendously valuable for in some cases, bringing people in but for the most part in terms of engagement and engagement is what you're used to manage churned. So with respect to the value of content. It's not all about exclusive original these libraries on.

Highly valuable and when you look at Paramount should what we call. The company now we have very deep very high quality libraries from the original Paramount studio from C. B S from Showtime from the cable networks and those are tremendously valuable for streaming both prepare amount plus and for food O T V. So don't lose sight.

That value because it is very material and it's keto are long term streaming economics as well.

Thanks, a lot of tests and we'll take our our last question from Steve K Hall at Wells Fargo. Steve Go ahead.

Hi, Thanks, just one kind of a long domestic question. So I was wondering if you could talk about where you think he bar in a domestic journey in terms of subs for Paramount, Boston and where that can go and similarly, you talked about the nine dollar or poo as we think about <unk>.

Subscription and advertising revenue, how do you think about the upside to domestic Arco and just while we're on domestic Paramount, but I think if you could go back in time, you might look at a slightly different arrangement for some of the early seasons of of Yellowstone would you on a competitor service that you have.

Any leather you can oh in the next couple of years to consolidate the Yellowstone library entirely on to Paramount plus thank you.

Yeah. So let me start there. So I would say we are very early in the Paramount plus subscriber journey remember this panic didn't exist a year ago. Today. So we've seen it build through calendar 2021 after launching in the March time frame, but really the fourth quarter was the first time we had.

Anything resembling scale in the scripted side for example, so there's a ways to go in terms of the the the scale Paramount plus will build in the United States and you saw today really the incredible content lineup, we have coming across all of these genres. So again I think there's a lot of head room here.

On on subscribers I'll address the Yellowstone appointment flip it to maybe for our food with respect to Yellowstone you write that deal was done pre the Viacom C. B S merger, that's unfortunate rather than just forgo that opportunity we chose to aggressively get into uhm spin off series like 18 83.

Related theories in terms of the creator and mayor of Kingstown, you saw some more stuff coming that's working very well for us Yellowstone is part of Paramount plus internationally. So that's how we think of that franchise today <unk>, Yeah, Let me jump in on <unk>.

We continue to be very encouraged by what we've seen from an <unk> perspective, particularly in the domestic market you saw on the prepared remarks. The nine dollar paid our food that we experienced in queue for we see continued upside in domestic <unk>, both short term and long term.

Short term there are really two key factors, we expect that there'll be a benefit from the continued conversion of promotional in trial subscribers to fully pay pay stubs. We continue to see very healthy trial to pay conversion right. So we actually see that as a compelling opportunity for.

The service both southern <unk> in an overall revenue perspective, we also expect to see continued improvement in the monetization of advertising on the essentials tier of Paramount plus the essentials here is a significant portion of our subscriber base both of them actually.

Central and premium sort of balance composition.

But we have seen improvements in the AD our food that's generated on the essentials here as engagement continues to grow with the service that we expect that will continue as we add more and more content to Paramount plus and then longer term. We also C. R. P left side coming out of the ability to Ah.

Just price as the content selection on the service continues to grow and his use a fair amount plus becomes even more habitual and I think we'll probably get some tailwind in that regard from the category in general what you're seeing pricing continue to move upward. So there will likely be opportunities for us to adjust price and still.

Maintain our value proposition relative to others. So we're very bullish about where where are who can grow and it is as I pointed out definitely one of the key ingredients to how we grow the business from a little over 3 billion of D to see revenue today to 9 billion plus in in 22.

Four it's not just about adding subscribers, it's about adding subscribers and growing <unk>. So we really liked that equation and the growth that he can create.

Alright, Thanks to mean and thank all of you for your time for your questions. Today, It's an important dialogue and it's really an exciting time for the company. We now call. Paramount you know look this is a time characterized by great momentum and it's a time reflective of tremendous go forward opportunity. So again, we appreciate you joining us.

We appreciate your continued support and wish everyone well, we'll talk to you soon.

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