Paramount Global is joining its competitors in hiking prices on its streaming subscriptions.
Starting Aug. 20, the price of Paramount+ with Showtime will increase by $1 to $12.99 per month, while the Paramount+ Essential plan will jump $2 to $7.99 per month for all new subscribers.
The change will take effect for existing Paramount+ with Showtime subscribers on their next billing date on or after Sept. 20. Existing monthly subscribers to Paramount+ Essential will continue their subscription at the current price of $5.99 and pricing of both annual subscription plans will remain unchanged.
The Limited Commercial Plan will also increase by $1 to $7.99 for current subscribers.
In addition to Paramount+, Max recently hiked the price of its ad-free and ultimate ad-free streaming tiers to $16.99 and 20.99 per month, respectively, while Peacock said it would raise the price of its premium and premium plus tiers 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 move comes as Paramount Global is looking to accelerate profitability in its streaming business, which is currently on track to reach the milestone domestically in fiscal 2025, reduce its $14.6 billion in long-term debt, return to investment grade metrics after a credit downgrade to junk status, and drive revenue and earnings growth.
Under a new long-term strategic plan laid out by the media conglomerate’s new Office of the CEO earlier this month, top executives Brian Robbins, George Cheeks and Chris McCarthy said they would integrate the company’s teams more closely and eliminate redundancies, take an “alternative” approach to its international strategy to boost profits and increase content licensing to help this effort.
The trio also said they identified $500 million in near term cost reduction opportunities in areas including real estate, technology, marketing and other corporate overhead. Additionally, the CEOs have already had talks about divesting some assets, which could potentially include Pluto TV, BET, VH1 and the Paramount lot, which would be leased back for the studio’s use, four individuals familiar with the matter previously told TheWrap, and are exploring options with other streaming players and technology platforms about forming a joint venture or long term strategic partnership.
Robbins, Cheeks and McCarthy will hold a town hall with employees on Tuesday and are expected to update Wall Street during the company’s second quarter earnings call in August.
Paramount’s slate of original series includes “Mayor of Kingstown,” “The Chi,” Lawmen: Bass Reeves,” “Knuckles, Fellow Travelers,” “Yellowjackets” and “Star Trek: Strange New worlds.”
It also has blockbuster films such as “Bob Marley: One Love,” “Mean Girls,” “Top Gun: Maverick,” “Transformers: Rise of the Beasts” and more. Starting this fall, the service will see the return of the NFL on CBS, as well as “Landman,” “Tulsa King,” “Dexter: Original Sin,” “School Spirits,” “Frasier” and “Lioness.”
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