Paramount Worldwide The company is raising prices on its flagship streaming service as it looks to turn around its business.
The company said Monday it will increase the price of the Paramount+ with Showtime package by $1 to $12.99 per month, and the price of the Paramount+ Essential option will increase by $2 to $7.99 per month for all new subscribers.
The price increase will take effect on August 20 for new customers on both plans. Existing Paramount+ with Showtime customers will see the price increase on or after September 20.
For existing customers, the price of the limited Paramount+ business option will also increase by $1, to $7.99.
A growing number of media companies are raising streaming prices as they look to profit from loss-making businesses. Paramount executives have publicly stated on multiple occasions that they see many opportunities to increase the price of their streaming service.
Comcast-owned NBCUniversal said it will raise Peacock prices ahead of the Summer Olympics in July, which will be broadcast exclusively on the NBC broadcast network and Peacock. This will be Peacock’s second price increase last year.
Earlier this month, Warner Bros. Discovery Channel announced it would increase the price of its Max streaming service.
Paramount merged its Showtime and Paramount+ platforms last year in a push to squeeze content spending, which has become a particular focus for media companies. The company also raised the price of Paramount+ late last year.
Paramount said in April that it added 3.7 million Paramount+ subscribers in the first quarter, bringing the total to 71 million. However, like most of its media peers, Paramount has posted losses related to its streaming services. The company said losses narrowed to $286 million, compared with a loss of $511 million in the same period last year.
The price increase comes after National Entertainment earlier this month stopped discussions with Skydance over a proposed merger with Paramount. Paramount controlling shareholder Shari Redstone’s National Amusements had agreed to work with a consortium that included David Ellison’s Skydance before ending deal talks Economic terms of the merger.
The company is now led by three leaders, called the Office of the CEO, led by CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy and Paramount Pictures Formed by CEO Brian Robbins.
The three leaders recently presented plans to turn around the company at Paramount’s annual shareholder meeting in case the Skydance deal doesn’t go through.
Strategic priorities – focused on reducing Paramount’s debt – include exploring streaming joint venture opportunities with other media companies, eliminating $500 million in costs and divesting non-core assets.
The three said they would reveal further plans during Paramount’s August earnings report.
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