(Reuters) – Paramount Global shares rose 6% in premarket trading on Friday as investors welcomed strong growth in the media group’s streaming business, even though the company, like rival Warner Bros Discovery, wrote down the value of its TV assets.

Paramount handily beat Wall Street earnings targets late Thursday, boosted by its streaming division, which houses the Paramount+ and PlutoTV services, reporting its first quarterly profit in three years. The company also announced it would cut 15% of its U.S. workforce as part of its cost-cutting plans ahead of its merger with Skydance Media.

The streaming gain exceeded Paramount’s writedown of the value of its cable networks by about $6 billion, a move that highlights the erosion of the traditional television business amid declining viewership and falling revenue in the age of streaming.

“Results from Paramount’s other businesses were unsurprisingly weak, but given Paramount’s current market value, it shouldn’t take much good news to generate excitement,” said Morningstar analyst Matthew Dolgin.

Paramount+’s revenue rose 46 percent in the second quarter, driven by year-over-year subscriber growth and higher prices. Paramount’s television division, on the other hand, saw revenue decline 17 percent.

Earlier this week, Warner Bros Discovery announced a $9 billion charge to its TV assets.

Paramount, like other media companies, has been expanding its streaming business to reach a wider audience. Earlier this year, the company signed a deal with US cable giant Charter Communications to give Charter’s Spectrum TV customers access to the ad-supported Paramount+ service.

“While linear network viewership has declined significantly and Paramount+ is not currently in the same league as the largest and most popular streaming platforms, we still see benefits in Paramount’s distribution offering,” Dolgin added.

(Reporting by Deborah Sophia in Bengaluru; Editing by Maju Samuel)