Paramount+ To Boost Prices After Showtime Merge, Paramount Global Will Take Up To $1.5 Billion Q1 Content Charge

Paramount Global’s CFO said the company will take a $1.3 billion to $1.5 billion hit in the current first quarter mostly on content as it restructures its streaming business, absorbing Showtime into Paramount+.

On a post-earnings conference call, Naveen Chopra said the combined service will raise prices: Paramount+ With Showtime will go from $9.99 to $11.99 a month. The Paramount+ essential tier, without Showtime, will rise a buck from $4.99 to $5.99, for new and existing customers.

He said the company will hit peak streaming investment and operating losses in 2023, reiterating plans to move towards streaming profitability and overall positive free cash flow in 2024 with the integration of Showtime a major contributor. He anticipated $700 million in fuure annual expense savings.

“A single service requires less content to acquire and retain subscribers than two services,” said CEO Bob Bakish. Showtime has higher churn, he said, and its viewers tend to congregate around a handful of key shows that represent half of its content spending.

The integration of Showtime annouced recently and taking effect later this year has resulted in management changes and significant layoffs.


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