Paramount is seeing the value of free content and working on building a free tier for Paramount+ among other updates, according to a new report.
Business Insider reports that Paramount has plans for a “free front porch” feature that would allow viewers to watch some content for free, by creating a free account with the streamer. The free tier is expected to roll out in the third quarter of this year.
A free tier would serve as a way to increase engagement by pulling in viewers who have no intention of signing up for another paid service. It would also potentially lead to paid conversions by drawing in users with a free sample of content then encouraging an upgrade to a paid tier to continuing watching their favorite shows on the platform.
Paramount isn’t the only company considering a free option. Earlier this month, we shared an update from Disney’s product and tech chief about exploring a free tier for Disney+. Netflix’s co-CEOs were also asked about a free tier during the company’s quarterly earnings call this month, with Greg Peters responding that it’s being considered and could be a smart move for some markets.
Services like YouTube, Tubi, and Pluto TV (also owned by Paramount) have proven that free content isn’t just popular, it’s also profitable. Companies like Fox and Roku are reporting solid revenue growth from their free services, with Fox crediting Tubi as a revenue driver in its annual report, despite a drop in profit for the company as a whole.
Paramount shared the plans for a free tier in an internal presentation, obtained by Business Insider, which also laid out plans for multiview, interactive features, and short form content including “microdramas” and podcast clips.