August Launch Date Announced for Paramount+ Price Hike
Paramount Global has announced price increases for its streaming subscriptions, following suit with its competitors in the industry. Effective August 20, the price of Paramount+ with Showtime will rise by $1 to $12.99 per month, while the Paramount+ Essential plan will see a $2 increase to $7.99 per month for new subscribers.
Existing subscribers of Paramount+ with Showtime will experience the price change on their next billing date on or after September 20. However, current monthly subscribers to Paramount+ Essential will maintain their subscription at the current price of $5.99. The pricing for both annual subscription plans will remain unaffected by these adjustments. Additionally, the Limited Commercial Plan will also see a $1 increase to $7.99 for current subscribers.
In a similar move, Max recently raised the prices of its ad-free and ultimate ad-free streaming tiers to $16.99 and $20.99 per month, respectively. Peacock also announced price hikes for its premium and premium plus tiers, increasing them to $7.99 and $13.99 per month, respectively, starting in July for new customers and August for existing subscribers, ahead of the 2024 Paris Olympics.
The decision to raise prices aligns with Paramount Global’s efforts to enhance profitability within its streaming business. The company aims to achieve domestic profitability by fiscal 2025, reduce its long-term debt of $14.6 billion, restore investment grade metrics post a credit downgrade to junk status, and drive revenue and earnings growth.
Under a new long-term strategic plan outlined by the media conglomerate’s Office of the CEO, top executives Brian Robbins, George Cheeks, and Chris McCarthy are focusing on streamlining operations. This includes integrating teams more closely, eliminating redundancies, adopting an alternative international strategy to boost profits, and expanding content licensing agreements.
The trio has identified $500 million in near-term cost reduction opportunities across various areas such as real estate, technology, marketing, and corporate overhead. Discussions have also commenced regarding potential divestments of assets like Pluto TV, BET, VH1, and the Paramount lot, with considerations for leasing back the Paramount lot for studio use. Paramount Global is exploring partnerships with other streaming platforms and technology companies to form joint ventures or long-term strategic alliances.
Robbins, Cheeks, and McCarthy are scheduled to hold a town hall with employees and provide updates during the company’s second-quarter earnings call in August. Paramount’s streaming service boasts a lineup of original series like “Mayor of Kingstown,” “The Chi,” and “Star Trek: Strange New Worlds,” along with blockbuster films such as “Mean Girls” and “Top Gun: Maverick.” The upcoming fall season will see the return of the NFL on CBS and the launch of new shows like “Landman” and “Dexter: Original Sin.”
