Paramount Global is raising the prices of its flagship streaming service, Paramount+, in an effort to turn around its business. Starting August 20, the price for the Paramount+ with Showtime plan will increase by $1 to $12.99 per month, while the Paramount+ Essential option will rise by $2 to $7.99 per month for new subscribers. Existing subscribers of the Paramount+ with Showtime plan will see the price increase on or after September 20. However, existing Paramount+ Essential subscribers will not face any price changes.
Additionally, the cost of the limited Paramount+ commercial option will increase by $1 to $7.99 for current customers. This move follows a trend among media companies to raise streaming prices in a bid to turn their cash-losing operations into profitable ventures. Paramount executives have publicly stated their belief in the potential for higher streaming service prices.
Comcast’s NBCUniversal also announced a price hike for Peacock in July, ahead of the Summer Olympics, marking its second price increase in the past year. Similarly, Warner Bros. Discovery recently raised the cost of its Max streaming service.
Last year, Paramount merged the Showtime and Paramount+ platforms to consolidate content spending, a common focus for media companies. The company previously raised Paramount+ prices late last year. In the first quarter of this year, Paramount added 3.7 million Paramount+ subscribers, bringing the total to 71 million. However, the company still reported streaming-related losses, though these losses narrowed to $286 million from $511 million in the previous year.
The price hike follows National Amusements’ decision to halt discussions with Skydance on a proposed merger with Paramount. National Amusements, owned by Shari Redstone, had initially agreed to the merger terms with a consortium led by David Ellison’s Skydance but ended the talks.
Currently, Paramount is led by a team known as the “Office of the CEO,” comprising CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins. These leaders outlined their strategy to revitalize the company during Paramount’s annual shareholder meeting, emphasizing lowering the company’s debt by exploring streaming joint venture opportunities, cutting $500 million in costs, and divesting noncore assets.
Further details of their strategic plans are expected to be revealed during Paramount’s earnings report in August. This price increase and strategic realignment reflect Paramount’s efforts to navigate the competitive streaming landscape and achieve financial stability.
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