Paramount+ to Increase Streaming Prices Amid Business Restructuring
Paramount Global is set to raise prices for its flagship streaming service, Paramount+, as part of its efforts to revitalize its business. This move reflects a broader trend among media companies to increase streaming service prices in a bid to achieve profitability. Starting August 20, new subscribers will see the price of the Paramount+ with Showtime plan rise by $1, bringing the monthly cost to $12.99. Meanwhile, the Paramount+ Essential plan, which does not include Showtime content, will see a $2 increase, raising its monthly price to $7.99. For existing subscribers, these changes will take effect from September 20 for the Showtime bundle. However, existing Paramount+ Essential customers will not face any immediate price hike. Additionally, the cost of the limited commercial option of Paramount+ will increase by $1 to $7.99 for current customers.
The price adjustments come as media companies across the board, such as Comcast’s NBCUniversal and Warner Bros. Discovery, are also raising prices for their streaming services. NBCUniversal announced a price hike for Peacock in July, coinciding with the Summer Olympics coverage. This marks Peacock’s second price increase within a year. Similarly, Warner Bros. Discovery recently raised the subscription cost for its Max streaming service. Paramount’s decision to increase prices follows its consolidation of the Showtime and Paramount+ platforms last year. This strategic move aimed to streamline content spending, a growing concern for media companies facing escalating costs. The company had already implemented a price increase for Paramount+ late last year.
In April, Paramount reported a net addition of 3.7 million Paramount+ subscribers during the first quarter, bringing its total to 71 million. Despite this growth, the company continues to post losses related to its streaming service. However, these losses have narrowed significantly, from $511 million a year ago to $286 million in the latest quarter. This price hike also follows recent developments involving National Amusements, the controlling shareholder of Paramount, owned by Shari Redstone. Earlier this month, National Amusements halted merger discussions with Skydance, led by David Ellison. This proposed merger had previously reached tentative economic terms before talks were abruptly ended.
Currently, Paramount is being led by the “Office of the CEO”, a trio comprising CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins. At Paramount’s recent shareholder meeting, these leaders outlined their strategy to steer the company forward in the absence of the Skydance merger. Their plan focuses on several key areas: reducing Paramount’s debt, exploring joint ventures for streaming with other media entities, cutting $500 million in costs, and divesting non-core assets. Further details of these strategic initiatives are expected to be revealed during Paramount’s upcoming earnings report in August. This restructuring and price increase signify Paramount’s ongoing efforts to stabilize and grow its streaming business in a highly competitive market.
SOURCE CNBC: https://www.cnbc.com/2024/06/24/paramount-to-increase-prices-for-its-streaming-plans.html
Share:
Apple’s AI Push Faces Big Challenges Ahead
Hollywood's Big Contraction: Voices of Italians Working in the IndustryRelated Posts
Paramount Global is set to raise prices for its flagship streaming service, Paramount+, as part of its efforts to revitalize its business. This move reflects a broader trend among media companies to increase streaming service prices in a bid to achieve profitability. Starting August 20, new subscribers will see the price of the Paramount+ with Showtime plan rise by $1, bringing the monthly cost to $12.99. Meanwhile, the Paramount+ Essential plan, which does not include Showtime content, will see a $2 increase, raising its monthly price to $7.99. For existing subscribers, these changes will take effect from September 20 for the Showtime bundle. However, existing Paramount+ Essential customers will not face any immediate price hike. Additionally, the cost of the limited commercial option of Paramount+ will increase by $1 to $7.99 for current customers.
The price adjustments come as media companies across the board, such as Comcast’s NBCUniversal and Warner Bros. Discovery, are also raising prices for their streaming services. NBCUniversal announced a price hike for Peacock in July, coinciding with the Summer Olympics coverage. This marks Peacock’s second price increase within a year. Similarly, Warner Bros. Discovery recently raised the subscription cost for its Max streaming service. Paramount’s decision to increase prices follows its consolidation of the Showtime and Paramount+ platforms last year. This strategic move aimed to streamline content spending, a growing concern for media companies facing escalating costs. The company had already implemented a price increase for Paramount+ late last year.
In April, Paramount reported a net addition of 3.7 million Paramount+ subscribers during the first quarter, bringing its total to 71 million. Despite this growth, the company continues to post losses related to its streaming service. However, these losses have narrowed significantly, from $511 million a year ago to $286 million in the latest quarter. This price hike also follows recent developments involving National Amusements, the controlling shareholder of Paramount, owned by Shari Redstone. Earlier this month, National Amusements halted merger discussions with Skydance, led by David Ellison. This proposed merger had previously reached tentative economic terms before talks were abruptly ended.
Currently, Paramount is being led by the “Office of the CEO”, a trio comprising CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins. At Paramount’s recent shareholder meeting, these leaders outlined their strategy to steer the company forward in the absence of the Skydance merger. Their plan focuses on several key areas: reducing Paramount’s debt, exploring joint ventures for streaming with other media entities, cutting $500 million in costs, and divesting non-core assets. Further details of these strategic initiatives are expected to be revealed during Paramount’s upcoming earnings report in August. This restructuring and price increase signify Paramount’s ongoing efforts to stabilize and grow its streaming business in a highly competitive market.
SOURCE CNBC: https://www.cnbc.com/2024/06/24/paramount-to-increase-prices-for-its-streaming-plans.html
Share:
Apple’s AI Push Faces Big Challenges AheadHollywood's Big Contraction: Voices of Italians Working in the Industry
