Paramount+ will increase prices for its streaming plans

Big global is raising the price of its flagship streaming service as the company looks to turn around its business.

The company said Monday that it will increase the price of its Paramount+ with Showtime subscription by $1 to $12.99 per month, and the price of its Paramount+ Essential option for all new subscribers by $2 to $7.99 per month will increase.

The price increase will take effect on August 20 for new customers for both subscriptions. Existing Paramount+ with Showtime customers will see the price increase take place on or after September 20. Existing Paramount+ Essential customers – who do not receive Showtime content – ​​will no longer pay for their subscriptions.

The price of the limited commercial option Paramount+ will also increase by $1 to $7.99 for current customers.

More media companies have raised streaming prices as they look to make a profit on the money-losing business. Paramount executives had said publicly on multiple occasions that they see a lot of opportunity to raise the price of streaming services.

Comcast's NBCUniversal said it would raise prices for Peacock in July, ahead of the Summer Olympics, which will air exclusively on the NBC broadcast network and Peacock. It is the second price increase for Peacock in the past year.

Earlier this month, Warner Bros. announced Discovery announced it would increase the cost of its Max streaming service.

Paramount had combined the Showtime and Paramount+ platforms last year in an effort to condense content spending, which has become a particular focus for media companies. The company also raised prices on Paramount+ late last year.

Paramount said in April that it added 3.7 million Paramount+ subscribers during the first quarter, bringing the total to 71 million. However, like most of its media peers, Paramount posted losses related to its streaming service. The company said first-quarter losses narrowed to $286 million, compared with $511 million in the same period a year earlier.

The price increase comes after National Amusements halted talks with Skydance over a proposed merger with Paramount earlier this month. National Amusements, owned by Paramount's controlling shareholder Shari Redstone, had previously agreed to the economic terms of a merger with a consortium including David Ellison's Skydance before deal talks ended.

The company is now led by a trio of leaders, called the “Office of the CEO,” consisting of CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy and Paramount Pictures CEO Brian Robbins.

The three leaders recently laid out at Paramount's annual shareholder meeting their plan to turn around the company in case the Skydance deal falls through.

Its strategic priorities – aimed at reducing Paramount's debt – include exploring opportunities for streaming joint ventures with other media companies and eliminating $500 million in costs, as well as divesting non-core assets.

The trio said they would reveal further plans during Paramount's earnings report in August.

– Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

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