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Paramount (PARA) to Stream Top Gun: Maverick on Paramount+

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Paramount Global (PARA - Free Report) recently announced that it will be streaming Top Gun: Maverick on Paramount+ from Dec 22 in the United States, Canada, Australia, Germany, Switzerland, Austria, Italy, the U.K. and Latin America. In South Korea and France, it will be available from 2023.

Top Gun: Maverick had a blockbuster performance across theatres as it remained in the top five on domestic box office charts for 14 of the 15 weeks since release in America.

The film also set a holiday record with its $160.5 million debut and became Tom Cruise’s first movie to surpass $100 million in a single weekend, as well as his first to cross $1 billion in worldwide ticket sales.

The movie gained traction and received huge support from fans on the big screen and the same is anticipated as it now heads towards its OTT launch.

Paramount+ Aids Growth

Paramount has been focused on setting a strong pipeline of movies and shows for its viewers on the streaming platform.

The company recently unveiled its plans to celebrate the 50th anniversary of hip hop music and culture, for which Paramount+ will offer 50 of the most iconic episodes of MTV Entertainment’s original series Yo! MTV Raps for the first time since it premiered and episodes from the home-makeover series, Hip Hop My House.

Paramount+ also announced the revival of the popular FBI drama, Criminal Minds. This is expected to fuel its fan base, which will pay even bigger returns after adding 4.6 million subscribers in the third quarter of 2022 and gaining 95% in revenues year over year.

Paramount also entered a new multi-year distribution agreement with Virgin Media, under which, Paramount+ will debut on Virgin TV in 2023 and Pluto TV will be more widely distributed on Virgin TV 360 and stream services.

Besides expanding the content library, Paramount+ has also been expanding its footprints globally. It has plans to introduce Paramount+ in Germany, Austria and Switzerland and in France with Canal+ this year.

What Lies Ahead for Paramount?

Despite the wide expansion, Paramount faces certain headwinds. Advertisers continue to deal with macroeconomic challenges like inflation, higher interest rates and unfavourable forex with the U.S. dollar strengthening. This has led to cutbacks in their spending and has hindered the company’s top-line growth.

Paramount is facing stiff competition from the likes of Disney (DIS - Free Report) and Apple (AAPL - Free Report) in the streaming market, which is currently dominated by Netflix (NFLX - Free Report) .

Netflix reported better-than-expected third-quarter 2022 subscriber numbers. It gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users.

Disney lost 37.9% shares year to date. Disney+ added 12.1 million subscribers in fourth-quarter fiscal 2022.

Both Netflix and Disney are set to launch their ad-tier subscriptions by the end of this year. These low-cost subscription plans are expected to further increase competition for Paramount.

Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.

Paramount shares have outperformed Disney and Netflix on a year-to-date basis, while underperforming Apple.

This Zacks Rank #5 (Strong Sell) company has lost 36.5% of its shares year to date compared with the Zacks Consumer Discretionary space, which fell 35.2% in the same period.

While Apple shares are down 15.4%, Disney and Netflix have dropped 37.9% and 52.4%, respectively.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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