Pluto TV's User Base Shrinks to 75M as Skydance Bets on Streaming Scale

Pluto TV's User Decline and What's Driving It

Skydance has revealed that its free streaming service Pluto TV now has approximately 75 million monthly active users, a significant decline from the roughly 89.6 million reported in 2025 and the approximately 84.2 million in 2024. The disclosure came during the company's third-quarter earnings report to shareholders on Monday, marking the first time Skydance has publicly acknowledged the shrinking user base since completing its merger with Warner Bros. Discovery last month.

The drop poses a challenge for CEO David Ellison, who has staked the company's streaming future on building a business capable of competing with Netflix and Disney. Before acquiring Warner Bros. Discovery, Skydance had already begun merging the technology platforms behind Paramount+ and Pluto TV—an internal initiative known as convergence. The first phase of that effort is now 'largely completed,' according to co-CEOs Ellison and Ynon Kreiz, meaning Pluto TV runs on the same technology as Paramount+ across all major streaming platforms.

In September, Pluto TV received a major interface refresh that shifted its on-demand content to the forefront, moving away from the always-on live channels that had been its signature feature. While Skydance says the change and other upgrades like improved personalization are 'already improving the user experience,' two Paramount streaming employees suggested the layout change may have contributed to the user decline. The company has not confirmed a direct link.

Pluto TV was an early entrant in the free ad-supported streaming TV (FAST) market when it launched in 2014, around the same time as rival Tubi. It was acquired by Viacom in 2019, which later merged with CBS and eventually became part of Skydance. Despite its head start, Pluto now faces formidable competition from Tubi, The Roku Channel, and YouTube, all of which have gained significant US TV viewing share in recent years.

Why Pluto's Slide Matters for Skydance's Streaming Ambitions

Where Pluto TV Stands Against Tubi, Roku and YouTube

Pluto TV's decline is not happening in a vacuum. While its monthly active users fell from 89.6 million to 75 million, rival Tubi grew from 74 million MAUs in September 2023 to 110 million as of August. The Roku Channel now reaches over 100 million households across Roku's platforms, and YouTube has surged to a 15.8% share of US TV viewing—more than double Netflix's 7.7%. Pluto's own share of US TV viewing peaked at 1% in February 2025 and has since been reported alongside Paramount+, making it difficult to isolate its individual performance. The competitive gap is widening, and Pluto's early-mover advantage in FAST has not translated into durable leadership.

What the Tech Convergence Means for Skydance

Skydance's convergence strategy—running Pluto TV and Paramount+ on the same technology stack—is designed to lower operating costs, accelerate product development, and enable shared personalization and monetization across free and subscription offerings. The first phase is 'largely completed,' according to the shareholder letter. For context, this kind of platform consolidation is a common playbook in media mergers, allowing companies to reduce redundant engineering spend and cross-promote services. However, the user decline suggests that operational efficiency alone may not be enough to reverse Pluto's fortunes, especially if the September interface change alienated its core live-channel audience.

The Warner Bros. Discovery Integration Challenge

Skydance's merger with Warner Bros. Discovery, completed last month, adds another layer of complexity. The combined company must now integrate WBD's streaming assets—including Max—while simultaneously addressing Pluto's user erosion. The shareholder letter frames the convergence as a success, but the 75 million MAU figure indicates that the free tier is losing traction. If Pluto's decline continues, it could undermine Skydance's ability to build a scaled streaming business that competes with Netflix and Disney, potentially forcing further strategic shifts or additional investment in content and user acquisition.

Short-Term vs. Long-Term Outlook

In the short term (0–6 months), Skydance will likely focus on stabilizing Pluto's user base through further product tweaks and cross-promotion with Paramount+ and WBD properties. Medium term (6–24 months), the success of the convergence and WBD integration will determine whether Skydance can achieve the scale needed to negotiate better advertising rates and content deals. Long term (2–5 years), Pluto's trajectory will signal whether FAST services can sustain growth against YouTube's dominance or whether they become niche products within larger streaming bundles.

What to Watch as Skydance Integrates Warner Bros. Discovery

Pluto TV's shrinking user base is a warning sign that Skydance's streaming consolidation must deliver user growth, not just cost savings.

For Skydance executives and investors, the 75 million MAU figure—down from 89.6 million—demands a clear response. The convergence of Pluto and Paramount+ onto one tech stack is a necessary step, but it will not automatically reverse the decline. The company should closely monitor whether the September interface change is driving users away, as two employees suspect, and be prepared to adjust the user experience if engagement metrics do not improve in the coming quarters.

• 0–6 months: Track Pluto TV's monthly active user trends in the next earnings report. If the decline continues, consider testing a hybrid interface that restores prominence to live channels while keeping on-demand content accessible.
• 6–24 months: Evaluate whether cross-promotion with Warner Bros. Discovery's Max and other properties can drive user acquisition. The success of the WBD integration will be critical to achieving the scale needed to compete with Tubi and Roku.
• 2–5 years: Assess whether Pluto TV remains a standalone growth engine or becomes a complementary free tier within a broader Skydance streaming bundle. The answer will shape content investment and advertising strategy.

Key metrics to watch: Pluto TV's quarterly MAU updates, Nielsen streaming share for Paramount+ (which includes Pluto), Tubi's MAU growth, and any commentary from Skydance management on user engagement following the interface change.