Shares of leading entertainment company, Paramount Global (PARA, Financial) also increased in the period, as the company’s fresharray of hit global content drove subscriber momentum worldwide. Paramount+ added a record 9.9 million subscribers in the quarter, with global direct-to-consumer subscriptions rising above 77 million. Additionally, Paramount Pictures opened six #1 films in the U.S. box office in 2022 and regained its position as the most-watched media family in linear television. While we acknowledge investments in content and international expansion continue to weigh on cash flow, we expect spending to moderate as the company enhances its focus on profitability for its streaming service, which should drive free cash flow in 2024 and beyond. In our view, the company’s long- term opportunity in streaming and the value of its proprietary content remain meaningfully underappreciated.
From John Rogers (Trades, Portfolio)' Ariel Fund first-quarter 2023 commentary.
