Paramount Global is raising subscription fees for its flagship streaming services, the media giant said Monday, as it seeks to recalibrate its business and pay down debt.
The pricing revision comes at a time when merger talks between non-executive chairwoman Shari Redstone and David Ellison’s Skydance Media over a potential sale of Redstone’s controlling stake in Paramount Global to the independent studio have collapsed, according to sources.
The Paramount+ plan with Showtime will cost $12.99 per month, an increase of $1, starting August 20 for new users and September 20 for existing customers.
The price of the Paramount+ Essential subscription will increase by $2, to $7.99 per month for new subscribers, starting August 20. However, current users of the plan will continue to pay $5.99 per month.
The Paramount+ limited commercial option subscription price will increase by $1, to $7.99 for current customers, starting September 20.
Paramount’s co-CEOs told employees in early June that the company will focus on transforming its streaming business, cutting costs and divesting some assets to help pay debt, according to a ’email seen by Reuters.
Advertiser abandonment and cord-cutting have hit Paramount’s traditional TV business, which accounts for more than half its revenue.
Its streaming service, which is smaller than those of its rivals, has more than 71 million subscribers, compared to Netflix’s 269.60 million.
Comcast’s Peacock streaming service also announced a rate review in April for its premium and premium-plus plans.
Warner Bros Discovery is also looking to raise prices on its Max streaming platform, Bloomberg News reported in May. (Reporting by Harshita Mary Varghese; Editing by Mohammed Safi Shamsi and Pooja Desai)
