Paramount+ just raised the prices of its plans in June. An executive just teased that more may be on the way.
“We see a very compelling pricing opportunity,” Paramount Chief Financial Officer Naveen Chopra said on the company’s third-quarter conference call on Thursday. “This won’t be the last price increase we do.”
The comments as virtually every streaming service and pay-TV provider has raised their prices, a reflection of the inflation hitting everyone and the rising cost of productions. For media companies like Paramount, raising the prices also helps it move its streaming service towards profitability.
Paramount reported earlier that it added 2.7 million new customers to its streaming service, but it and its ad-supported platform Pluto posted an operating loss of $238 million.
In June, Paramount launched its premium bundle that combined Paramount+ with Showtime and no ads for $11.99, a $2 increase over the prior ad-free Paramount+ service. It also raised the price of its ad-tier by $1 to $5.99 a month.
Chopra said the reaction to the price increase was better than expected, with fewer customers dropping off than expected. That suggests an opening for another increase. He argued that the service was still competitively priced despite the increase.
Here’s what else Paramount’s executives said on the call:
Commenting on Charter’s deal to bundle Disney+ for free to its Spectrum customers, CEO Bob Bakish said that he has signed several deals with distributors to bundle the Paramount+-Showtime bundle, giving cable customers credentials to log in. He didn’t say which distributors he is working with.
It’s part of the company’s strategy to grow its audience, which include a partnership to offer the service for free to Walmart+ customers.
No ads on premium
Chopra nixed the idea of creating a middle tier that includes ads for the Paramount+=-Showtime bundle. “It’s not something that’s been a major priority for us,” he said.
Password sharing crackdown?
Netflix is already cracking down on password sharing, and Disney+ teased it would start doing so next year. But Paramount+ doesn’t seem to be bothered by the practice.
“We don’t see it as a major headwind to growth,” Chopra said. “We’ll continue to monitor.”
He added that if it became a problem, there’s already a template for how to address it.
Photo Credit: Paramount