Paramount+ to raise price of Essential and Premium subscriptions after low quarterly revenue

Paramount Global on Thursday said it would raise prices for its flagship streaming service in some markets after reporting quarterly revenue that fell short of expectations, as a broader advertising market slump hit the owner of the CBS network.

Shares of the company fell 7% before the bell. The stock has gained around 45% since the start of 2023 through Wednesday’s close.

Rising prices, rising borrowing costs, easing consumer demand for products and services, and geopolitical unrest in some regions have forced companies to cut advertising spending.

TV advertising revenue fell 7% in the three months to December, despite an increase in political advertising following the US midterm elections in November.

Paramount+ added a record 9.9 million subscribers, thanks in part to the streaming release of hit movie Top Gun: Maverick, as the company shields the business from rising blackouts. cord.

The company announced last month that it would integrate Showtime, known for popular shows including Billions, Yellowjackets and Dexter, with Paramount+ across all platforms later this year as it prioritizes streaming services.

Chief Executive Bob Bakish said the company plans to raise prices for its Paramount+ Premium and Essential tiers this year in the U.S. and select non-U.S. markets.

The company said it will drop to $11.99 (nearly Rs. 1,000) per month, down from $9.99 (nearly Rs. Rs.500) versus $4.99 (almost Rs.410) for the tier that does not include Showtime.

Total revenue rose 2% to $8.13 billion (nearly Rs.67,300 crore) in the quarter but missed expectations of $8.16 billion (nearly Rs.67,550 crores of rupees), according to data from Refinitiv.

Operating losses at the company’s direct-to-consumer unit, which hosts its streaming services like Paramount+ and PlutoTV, fell from $502 million (almost Rs. 4,150 crore) to $575 million (nearly Rs. 4,760 crore). Investors focused on the service as the company outlined plans to spend aggressively on content to fend off competition.

© Thomson Reuters 2023