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Paramount+ to raise prices for its streaming plans later this year

Streaming subscribers will soon be paying more for Paramount+, whether or not they have Showtime added on to their plan. Paramount Global PARA, -4.24% Chief Executive Bob Bakish said Thursday on the company’s earnings call that prices will rise in the third quarter of 2023, despite Paramount+ seeing a record addition of nearly 10 million

paramount+-to-raise-prices-for-its-streaming-plans-later-this-year

Streaming subscribers will soon be paying more for Paramount+, whether or not they have Showtime added on to their plan.

Paramount Global PARA, -4.24% Chief Executive Bob Bakish said Thursday on the company’s earnings call that prices will rise in the third quarter of 2023, despite Paramount+ seeing a record addition of nearly 10 million subscriptions last quarter.

See: Paramount swings to a loss but sees record subscriber growth for Paramount+

“We all know streaming represents incredible value for consumers and the Paramount+ offering is far from the industry price leader. We are on the value end of the pricing spectrum. And so in 2023, we will raise prices both for Paramount Plus Premium and Essential, both in the U.S., and select international markets,” Bakish said, according to a FactSet transcript.

The price of the ad-supported tier, which does not include Showtime, will rise from $4.99 a month to $5.99 a month, while the ad-free tier will rise from $9.99 a month to $11.99 a month, including Showtime. They’ll be the first price hikes since CBS All Access rebranded as Paramount+ two years ago.

Even at the higher price, the service will still be cheaper than rivals such as Netflix NFLX, -2.96%, Disney’s DIS, -3.12% Hulu, and Warner Bros. Discovery’s WBD, -0.26% HBO Max.

In January, Paramount announced Paramount+ and Showtime will merge later this year, under the new name “Paramount+ with Showtime.” The merger is expected in the third quarter as well.

Paramount shares have shot nearly 40% higher year to date, but are still down 20% over the past 12 months, compared to the S&P 500’s SPX, -1.38% 6.5% increase in 2023 and 6.6% decline over the past year.

Also see: What to watch? Get monthly picks at What’s Worth Streaming

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