Apparently still riding high from Top Gun: Maverick, Paramount+ to raise subscription prices
The changes will come when Paramount+ merges with Showtime later this year
Nearly two years after its launch, Paramount+ is looking to raise its subscription prices. The move comes in conjunction with the streaming services merger with Showtime—which has been given the predictable yet long-winded name, Paramount+ with Showtime.
“We all know streaming represents incredible value for consumers and the Paramount Plus 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,” CEO Bob Bakish said on a recent earnings call, per The Hollywood Reporter.
Once Paramount+ with Showtime officially launches in the third quarter, prices will increase for all new and existing customers. The ad-free plan will increase from $9.99 to $11.99 a month, and the “essential” plan with advertising will move from $4.99 to $5.99 per month. The price increase follows the industry trend, with nearly all streaming service companies trying to figure out ways to earn more money and spend less on original productions.
Speaking of saving money on original films and television series, Bakish details what kind of projects it will funnel money toward. In more predictable and somber news: it’s franchises.
“By far our biggest lever to manage spending is to focus on franchises,” Bakish says. “The higher levels of consumer awareness and built-in fan bases associated with this IP drive strong subscriber acquisition volume, lower acquisition costs, lower churn and extend LTVs.”
“And while we will, of course continue to take selective swings on new IP, there’s no question that franchises are a powerful advantage,” he adds.
Like the increase in pricing, nearly all streaming company executives are also looking into how to cash in on an already existing franchise, or craft a new one with endless exploitation options. It’s grim to think about the intentional aversion to original ideas and how this harms creatives and viewers, who face limited access to projects not stemming from an already existing IP.
Paramount’s already done a bit of original franchising itself, with an already unwieldy list of Yellowstone projects airing and new ones on the way. If you’re keeping track, there are five spin-offs currently in production in addition to the original series (four of which have been announced in the last year). In short, it’s insane.
It seems that if streaming services continue to have their way, we’ll be looking at paying more and more for services with increasingly limited payoff. As beloved original series continue to be killed off in the name of cost-saving and tax write-offs, the streaming death march goes on.