Paramount Global on Thursday said it would raise prices for its flagship streaming service in some markets after reporting lower-than-expected quarterly revenue as a broader slump in the advertising market hit the CBS network owner.
The company’s shares fell 7 percent before the bell. The stock is up around 45 percent since early 2023 through the close of trading on Wednesday.
Rising prices, higher borrowing costs, declining consumer demand for products and services, and geopolitical unrest in certain regions have forced companies to reduce advertising spending.
TV advertising revenue fell 7 percent in the three months to December, despite a surge in political advertising following the US midterm elections in November.
Outstanding+ added a record 9.9 million subscribers, due in part to the hit film’s streaming release Top Gun: Maverickas business dampens the company amid increased cable cutting.
The company said last month it would integrate show timeknown for popular shows including billion, Yellow jackets and Dexter, with Paramount+ cross-platform later this year as it prioritizes streaming services.
Chief Executive Bob Bakish said the company plans to increase prices for its Paramount+ Premium and Essential tiers this year in the United States and some non-US markets.
The company said it will go from $9.99 (nearly Rs. 820) for the tier that includes Showtime to $11.99 (nearly Rs. 1,000) per month and from $4.99 (nearly Rs. 410) will rise to $5.99 (nearly Rs. 500) Tier not including Showtime.
Total revenue rose 2 percent to US$8.13 billion (nearly Rs.67,300 billion) in the quarter but missed expectations of US$8.16 billion (nearly Rs.67,550 billion), according to data from Refinitiv.
Operating losses at the company’s direct-to-consumer unit, which houses streaming services like Paramount+ and PlutoTV, rose to US$575 million (nearly Rs.4,760 billion) from US$502 million (nearly Rs.4,150 billion). billion Rs.). Investors have focused on the service as the company outlined plans to spend aggressively on content to stave off competition.
© Thomson Reuters 2023
