:max_bytes(150000):strip_icc()/GettyImages-2150317927-479c9847855b4520803213c25b82cb83.jpg "Paramount Shares Rise as Company Announces Paramount+ Price Hikes")
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Key Takeaways
- Paramount announced plans to raise the price of its Paramount+ streaming service later this year.
- Its plan prices will rise from $1 to $2 for new customers in August, a move that comes as a number of streamers have recently raised prices to improve profitability of the services.
- Paramount is also still navigating a number of takeover and merger offers after reports that its latest deal with Skydance was axed by controlling shareholder Shari Redstone earlier this month.
Paramount Global (PARA) shares rose Monday afternoon as the company announced plans to raise the prices of its Paramount+ streaming service as it navigates a variety of takeover and merger offers that have surrounded Paramount in recent months.
A number of other streaming services have also raised prices over the last year, incorporated ad-supported tiers, and started to negotiate deals to bundle their services, as the industry works to grow subscribers and increase profitability.
How Much Will Paramount+ Prices Increase?
The Paramount+ Essential plan will jump by $2 to $8 per month for new subscribers only. The Paramount+ with Showtime plan will rise $1 to $13 per month on August 20 for new customers, and for existing customers in their next billing cycle after September 20, the company said in a statement to Investopedia.
The price of the streamer’s “limited commercials” plan will also increase $1 to $8 for current and new subscribers.
The price increases by Paramount follow a similar move by Warner Bros. Discovery’s (WBD), which raised prices for its Max streaming service earlier this month, as well as across industries with music streamers such as Spotify (SPOT) also raising prices.
Paramount’s Various Merger and Takeover Offers
A number of buyers have lined up over the several months to make a variety of offers after it was reported that controlling shareholder Shari Redstone was exploring a sale of the longtime entertainment conglomerate in December.
In April, Paramount reportedly entered “exclusive negotiations” with Skydance, the media company of David Ellison behind recent action hits like “Top Gun: Maverick” and some of the “Mission: Impossible” franchise. Earlier this month, reports emerged that Redstone and National Amusements, the holding company that controls the majority of Paramount shares, had reached an agreement to merge with Skydance, giving it control over Paramount. Just over a week after the report that the deal was reached, Redstone reportedly called off the deal shortly before a committee of Paramount directors was set to vote to approve it.
The company has also seen executive changes in recent months, as CEO Bob Bakish stepped down in April and Paramount created a three-person “Office of the CEO”.
Paramount shares gained 1.4% to $10.29 on Monday, but are still down about 30% so far this year.