Media giant Paramount Global said on Monday it will raise subscription fees for its flagship streaming service as it seeks to rebalance its business and pay down debt.
The repricing comes at a time when merger talks between non-executive Chairman Shari Redstone and David Ellison’s Skydance Media to sell Redstone’s controlling stake in Paramount Global to an independent studio have failed, according to people familiar with the matter.
The Paramount+ with Showtime plan will cost $12.99 per month, increasing by $1 for new users starting August 20th and for existing customers starting September 20th.
Paramount+ Essential subscription prices will increase by $2 for new subscribers to $7.99 per month starting August 20. Current users of the plan, however, will continue to pay $5.99 per month.
Subscription prices for the limited Paramount+ commercial option will increase by $1 to $7.99 for current customers starting September 20th.
Paramount’s co-chief executives told employees in early June that the company would focus on revamping its streaming business, cutting costs and selling assets to pay down debt, according to an email reviewed by Reuters.
Paramount’s traditional TV business, which accounts for more than half of its revenue, has been hit by advertiser withdrawal and cable cancellations.
Though it’s smaller than its rivals, the company’s streaming service has more than 71 million subscribers, compared to Netflix’s 269.6 million.
Comcast’s Peacock streaming service also announced pricing changes for its Premium and Premium Plus plans in April.
Bloomberg News reported in May that Warner Bros. Discovery was also considering raising prices for its streaming platform Max.
