The CBS network’s owner, Paramount Worldwide, announced on Thursday that it will increase the price of its flagship streaming service after reporting quarterly income that was lower than anticipated and a broader decline in the advertising market.
Bob Bakish, the business’s chief executive, stated that the company intends to increase pricing for its Paramount+ Premium and Essential tiers in the United States and in several other regions.
The price of the tier that includes Showtime will increase from $9.99 to $11.99 per month, while the price of the tier without the premium channel will increase from $4.99 to $5.99 per month.
As it focuses streaming services, the business announced last month that it would merge Showtime, known for hit shows such as “Billions,” “Yellowjackets,” and “Dexter,” with Paramount+ across platforms later this year.
Companies have reduced their advertising budgets as a result of rising pricing, greater financing costs, a decline in consumer demand for all products and services, and geopolitical turmoil in particular places.
Due in part to the streaming release of the successful film “Top Gun: Maverick,” Paramount+ added a record 9.9 million subscribers.
AP
Despite a rise in political advertising as a result of the midterm elections in November, television advertising revenue declined 7% in the three months leading up to December.
Due in part to the streaming release of the blockbuster film “Top Gun: Maverick,” Paramount+ attracted a record 9.9 million subscribers, cushioning the firm in the face of growing cord-cutting.
According to Refinitiv data, quarterly revenue increased by 2% to $8.13 billion but fell short of forecasts of $8.16 billion.
The company’s direct-to-consumer unit, which includes major streaming services such as Paramount+ and PlutoTV, increased its operating losses to $575 million from $502 million. Investors have focused on the service since the company expects to aggressively invest in content to combat competition.
The company’s stock declined 3.8%. Since the beginning of 2023 to Wednesday’s close, the stock has risen almost 45.0%.
»Paramount will increase streaming costs in response to a decline in advertising revenue«