Are you a fan of Paramount Global’s streaming service Paramount+? Well, get ready for a price hike as the company looks to revamp its business strategy. In a recent announcement, Paramount Global revealed that it will be increasing the price of its flagship streaming service, Paramount+, in an effort to turn the business around.
Starting on August 20th, new customers can expect to see a $1 increase in the Paramount+ with Showtime plan, bringing the monthly cost to $12.99. Additionally, the price of the Paramount+ Essential option will also see a $2 increase to $7.99 a month for new subscribers. Existing customers will see the price hike go into effect on or after September 20th.
It’s not just Paramount Global making these changes – other media companies have also been raising prices for their streaming services in an attempt to make a profit. Comcast’s NBCUniversal recently announced a price increase for Peacock, and Warner Bros. Discovery has also raised the cost of its Max streaming service.
Paramount Global combined the Showtime and Paramount+ platforms last year to streamline content spending, which has become a major focus for media companies. The company had previously increased Paramount+ prices late last year as well.
Despite the price hike, Paramount Global has seen success with Paramount+, adding 3.7 million subscribers in the first quarter of this year, bringing the total to 71 million. However, like many other media companies, Paramount Global has posted losses related to its streaming service.
In the midst of all these changes, National Amusements recently halted discussions with Skydance on a proposed merger with Paramount. Now, the company is being led by a trio of leaders known as the “Office of the CEO,” who have outlined their plan to turn the company around at Paramount’s annual shareholder meeting.
The strategic priorities include exploring streaming joint venture opportunities with other media companies, cutting $500 million in costs, and divesting noncore assets. Stay tuned for further updates as the trio plans to unveil more details during Paramount’s earnings report in August.
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