The global economy has seen better days. Even huge media conglomerates are not immune to the effects of the recent economic downturn, with titans like Netflix and Disney Plus recently raising prices in an attempt to become financially solvent.
It comes as no surprise, then, that Paramount Plus, Paramount’s flagship streaming platform, has recently undergone a restructuring of its service, which will see membership prices rise significantly.
Thanks to the production company’s desire to streamline operations and cut costs, Showtime’s recent merger with Paramount Global has led to a more prudent fiscal strategy. According to VarietyParamount Global hopes to recoup approximately $700 million in costs by uniting Paramount+ and Showtime to streamline mainstream content production.
After a earnings call on February 16, CEO Bob Bakish stated that “the Paramount Plus offering is far from the price leader in the industry. We are on the value side of the price spectrum. In 2023, we will raise prices, both for Paramount Plus Premium and Essential, in the US and selected international markets.”
Paramount has poured money into original production and targeted marketing in an effort to keep what it hopes to become a contender for the streaming crown afloat, but doing so has skyrocketed costs, to the extent that the mega-corporation is likely will spend more than it recovers in 2023.
This means US members who had already combined Showtime and Paramount in one package will see their costs increase from $9.99 per month to $11.99. For basic streamers, their subscription price increases by $1 to $5.99 per month, whether or not they take advantage of the Showtime merger.
It’s not yet clear how those outside the United States will be affected, as UK users are currently charged £6.99 a month for the service or a flat fee of £69.99 for a year.
Paramount’s upstart competitor is still a relative unknown in the crowded streaming landscape, and while it doesn’t yet have the weight to challenge the industry leaders for supremacy, the surge in popularity of shows like Star Trek: Picard And Yellowstone has hinted that it could be a real contender. Whether that will be enough to retain current users or lure new travelers to Paramount’s shores after the proposed increases remains unclear.
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