The global economy has seen better days. Even massive media conglomerates aren’t immune from the effects of the recent economic downturn, with titans such as Netflix and Disney Plus recently hiking prices in a bid to say financially solvent.
It’s little surprise then, that new kid on the block Paramount Plus, Paramount’s flagship streaming platform, recently saw a restructuring of its service that will see membership prices rise significantly.
Thanks to the production company’s desire to streamline its operations and cut costs, the recent merger of Showtime with Paramount Global has hinted at a more prudent fiscal strategy. According to Variety, Paramount Global hopes to claw back around $700 million in costs by uniting Paramount+ and Showtime, and thus streamlining mainstream content production.
Following an earnings call on February 16th, CEO Bob Bakish declared that “The Paramount Plus offering is far from the industry price leader. We are on the value end of the pricing spectrum. In 2023, we will raise prices, both for Paramount Plus premium and essential, in the US and select international markets."
Paramount has been pouring money into original production and targeted marketing in a bid to float what it hopes will be a contender for the streaming crown, but doing so has seen costs spiral, to the extent that the mega-corp will likely be spending more than it recoups in 2023.
What this means is that US members who had already combined Showtime and Paramount into one package will see their costs rise from $9.99 a month to $11.99. For basic streamers, their plan price will increase by $1 to $5.99 per month, regardless of receiving no benefit from the merger with Showtime.
It isn’t yet clear how those outside of the United States will be affected, with UK users currently charged £6.99 a month for the service or a flat fee of £69.99 for a year.
Paramount’s fledging competitor is still a relative unknown in the crowded streaming landscape, and while it doesn’t yet have the heft to challenge the market leaders for supremacy, the massive popularity of shows such as Star Trek: Picard and Yellowstone has hinted that it could be a genuine contender. Whether that will be enough to keep hold of current users or tempt new travellers to Paramount’s shores following the proposed increases remains unclear.
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