(Reuters) -Paramount Global ( PARAA ) fell short of Wall Street's fourth-quarter revenue expectations on Wednesday as a continued decline in its cable TV unit clouded higher-than-expected subscriber growth for its Paramount+ streaming platform. 

Shares of the company fell 1.5% in extended trading.

Media giants are reshaping their business strategies in response to the continued erosion of cable TV audiences to streaming platforms. 

According to TD Cowen's analysts, Paramount is highly vulnerable to fluctuations in advertising performance due to its heavy reliance on ad revenue as a key part of its total earnings.

The company, which is planning to merge with Skydance Media, reported revenue of $7.98 billion for the quarter ended December 31, compared with analysts' projection of $8.10 billion, according to data compiled by LSEG. 

Revenue at its TV media segment fell by 4% from a year earlier, hurt by declines in the linear advertising market and fewer sporting events on CBS.

Its filmed entertainment division posted an adjusted operating loss of $42 million despite box office hits such as "Gladiator II" and the third edition of "Sonic the Hedgehog."

However, the company's flagship streaming service, Paramount+, was a bright spot after it added 5.6 million subscribers during the quarter, more than double the analysts' expectations for 2.58 million new subscribers, according to data from Visible Alpha.

The additions were up from 3.5 million in the third quarter.

In the three months through December 31, Paramount+ welcomed back the popular American spy thriller "Lioness," while also debuting "Landman," a new drama series starring Billy Bob Thornton and Demi Moore.

A strong content lineup, including original productions such as "The Agency," starring Michael Fassbender, helped boost engagement and subscriber growth.

Paramount reported an adjusted per-share loss from continuing operations of 11 cents, while analysts were expecting, on average, a profit of 12 cents per share.