Paramount+ looks set to become the latest streaming service to increase the price of its packages soon, as it seeks to achieve profitability. The company recently announced that its losses had dropped to $490m in Q4, which was better than had been expected.
Paramount+ set to increase prices as it seeks profitability
This news came as Paramount (PARA) CFO Naveen Chopra spoke at the Morgan Stanley Technology, Media & Telecom Conference. The company believes that it will be profitable by 2025 without having to increase the cost of its packages in 2024. However, Chopra said that “going forward, we do anticipate future price increases”.
He also said that they don’t expect to lose a lot of customers due to any future increases, because of their value proposition and the balanced growth achieved so far. Paramount+ raised the price of its ad-showing tier by $1 last year and brought in a premium ad-free service called Paramount+ with Showtime at a monthly cost of $11.99.
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Those Q4 results confirmed that 4.1 million subscribers had joined the service, giving a total of 67.5 million at the end of 2023. CEO Bob Bakish expects a smaller increase in subscription numbers in 2024, though he confirmed that they will continue to look for new ways of bundling the channel with interesting packages.
The PARA share price gained 3% on Wednesday following these announcements and with rumours of buyout deals in the air. The company is said to be focusing on its plans for the future but hasn’t ruled out a deal being done.
