Paramount Global (PARA.O) announced it will increase subscription rates for its flagship streaming services, citing a need to restructure its operations and manage debt. Talks of a potential sale of Redstone’s controlling stake to Skydance Media have reportedly collapsed.
Starting August 20, new users of the Paramount+ with Showtime plan will see a $1 monthly increase to $12.99, with existing customers facing the hike on September 20. Meanwhile, the Paramount+ Essential plan will rise by $2 for new subscribers to $7.99 monthly, while current users will maintain their $5.99 rate.
Existing customers of the limited Paramount+ commercial plan will experience a $1 increase to $7.99 starting September 20. Paramount co-CEOs informed employees in June of plans to streamline their streaming business, cut costs, and sell off assets to reduce debt, according to a Reuters report.
Declining advertiser support and cord-cutting have significantly impacted Paramount’s traditional TV segment, which constitutes over half of its revenue. Despite having fewer subscribers compared to rivals like Netflix, Paramount’s streaming service boasts more than 71 million users.
In April, Comcast’s Peacock streaming service also adjusted rates for its premium plans, while Warner Bros Discovery is reportedly planning a similar move for its Max platform, as per Bloomberg News in May.
