After raising its prices and merging with Showtime, Paramount Plus gained more subscribers and saw shrinking losses this quarter. During an earnings call on Thursday, Paramount CEO Bob Bakish said this quarter represented a “significant step:”

We’re clearly advancing on the path to streaming profitability, and this continued DTC [direct-to-consumer] improvement will be a key driver of the total company earnings growth we expect next year.

The streaming service now has 63 million global subscribers, while Paramount’s streaming division, which includes Paramount Plus and the free-to-stream PlutoTV, lost $238 million this quarter — far less than the $438 million predicted by analysts.