Paramount Plus is earning its name once more, as another price hike will take effect on several of its subscription plans for new subscribers this August 20.
New customers will reportedly pay more for the Paramount Plus Essential, Showtime-enabled Paramount Plus, and Paramount Plus with restricted ads plans. On the other hand, the cost of the existing Paramount Plus essential plan subscribers won't change.
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Reports state that the monthly cost of the Paramount Plus with Showtime subscription will increase to $12.99 from its previous $11.99. The Paramount Plus Essential plan will now cost $7.99 from $5.99, while the Paramount Plus with restricted ads plan will now cost $7.99 from $6.99 per month.
Existing Paramount Plus Essential plan subscribers will continue to pay the old rate and will only be affected by the new price increase should they switch to a new account. However, customers of the existing Paramount Plus with Showtime and Paramount Plus with restricted advertising plans will be required to pay the higher rates after September 20 or on their next billing date.
As per Fox, however, the yearly rates for Paramount+ with Showtime and Paramount+ Essential subscriptions will remain at $119.99 and $59.99, respectively.
Read Also: Showtime Streaming Service is Shutting Down, Users Redirected to Paramount Plus
Paramount+'s Profit Push
In the latest quarter, Paramount Global's direct-to-consumer segment generated around $1.88 billion in revenue, of which $1.36 billion was derived from subscriptions.
The company has been trying to make money on its direct-to-consumer companies, which include Pluto TV, BET+, and Paramount+. This is a 44% increase from the $286 million loss on tailored operating revenue before depreciation and amortization that the company incurred in the first quarter.
Netflix's Shift
Only a few streaming behemoths have been spared from changes this year. On April 18, Netflix implied a shift in its priorities to emphasize generating revenue through paid sharing and advertising, even if its subscriber base was still growing significantly.
At the time, this strategic move implied that the company's reporting goals might change in the upcoming years and might even eliminate the emphasis on subscriber data as the main measure of success.
Even though the streaming behemoth added 9.3 million new users this quarter, it said it will stop releasing quarterly membership statistics by 2025.
This choice aligns with Netflix's evolving approach, which recognizes that the number of subscribers is only one factor in the company's growth trajectory. Subscription counts have always been a key factor in evaluating the success of streaming services.
Netflix now highlights that its various revenue streams, such as paid sharing and advertising, are essential to its success.
This action highlights Netflix's shift from traditional subscriber acquisition measures to a more comprehensive assessment of its financial health.
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