Earlier this year, Berkshire Hathaway $BRK.A started investing in Paramount Global. Buffett loves the stock as he increased his holdings in the third quarter. However, he has yet to have much success with the stock so far, as $PARA has lost neraly 40% of its value this year.
The market for streaming companies looking to grow is ripe in Europe. The global subscription video-on-demand (SVOD) business is projected to generate close to $81 billion in revenue in 2022, with $13.5 billion coming from Europe. And now is unquestionably an excellent moment for Paramount+ to expand its presence in the region, considering that the SVOD market in Europe is predicted to generate $26 billion in revenue by 2027.
Nine of the top 10 kids' shows on cable TV are on Nickelodeon. According to sign-ups this year, the streaming service Paramount+ is the most popular in the United States. The top free ad-supported streaming TV provider in the United States is still Pluto TV.
Last but not least, the company's payout ratio is less than 22%, and management has plenty of financial room to raise such distributions, as the underpinning business of Paramount Global is doing well, with seven top 10 entertainment programs belonging to the company's CBS network.
Source: Yahoo Finance