Paramount Global announced on Monday that it will raise subscription rates for its flagship streaming services.
This move comes as part of the media giant’s strategy to recalibrate its business and address its debt obligations.
The price adjustments occur amid reports that merger discussions between Non-Executive Chairwoman Shari Redstone and David Ellison’s Skydance Media have failed. Sources indicate that talks regarding the potential sale of Redstone’s controlling stake in Paramount Global to the independent studio did not result in an agreement.
Effective August 20, the Paramount+ with Showtime plan will cost $12.99 per month, reflecting a $1 increase for new users. Existing customers will see the price hike on September 20.
Additionally, the Paramount+ Essential subscription will rise by $2 to $7.99 per month for new subscribers, starting August 20, while current users will continue to pay the existing rate of $5.99 per month. The limited commercial option for Paramount+ will also see a $1 increase to $7.99 per month for current customers beginning September 20.
In an internal email seen by Reuters, Paramount co-CEOs informed employees in June that the company will focus on transforming its streaming business, cutting costs, and divesting certain assets to reduce debt.
These changes come as Paramount’s traditional TV business, which constitutes more than half of its revenue, faces challenges from declining advertiser support and the ongoing trend of cord-cutting.
Paramount’s streaming service, although smaller than its competitors, has garnered over 71 million subscribers. This is in comparison to Netflix’s 269.60 million subscribers and Comcast’s Peacock service, which also revised its subscription rates in April.
Additionally, Warner Bros Discovery is reportedly planning to increase prices for its Max streaming platform, as reported by Bloomberg News in May.
The revisions in subscription rates underscore Paramount Global’s broader efforts to strengthen its financial position and adapt to the evolving media landscape.
