Paramount+ to raise prices for streaming plans

Paramount Global has announced a price hike for its streaming service, Paramount+, with changes set to take effect in August. New subscribers to Paramount+ Essential will see a $2 increase to $7.99 per month, while the Paramount+ with Showtime plan will rise by $1 to $12.99 monthly for new members. Existing subscribers to the ad-supported tier will maintain the current $5.99 fee, with the price increase for current Paramount+ with Showtime customers coming into effect after Sept. 20. The company's direct-to-consumer unit, which includes Paramount+, BET+, and Pluto TV, generated $1.88 billion in revenue in the last quarter, with a focus on profitability. The move to raise prices aligns with Paramount Global's efforts to improve its direct-to-consumer business, which has shown progress with a 44% improvement in adjusted operating income before depreciation and amortization. Paramount+ has garnered over 71 million subscribers since its launch in 2021, competing with industry giants like Netflix, Disney+, Hulu, and HBO Max. The company's decision to increase prices follows similar actions by other media companies, such as Comcast's NBCUniversal and Discovery, aiming to offset losses in the streaming sector. National Amusements, the controlling shareholder of Paramount, recently halted merger discussions with Skydance, leading to a shift in leadership at Paramount Global. The company is now overseen by a trio of executives known as the "Office of the CEO," comprising George Cheeks, Chris McCarthy, and Brian Robbins. Further plans for Paramount's future will be revealed during the upcoming earnings report in August, as the company navigates changes in the streaming landscape and seeks to enhance its business operations.