Paramount Stock Drops 14% as Streaming Loses $511 Million
thewrap.comintegration of Showtime into Paramount+ will officially launch in the third quarter, the company confirmed. The combination, which is expected to generate approximately $700 million in future annual expense savings, resulted in a programming charge of $1.7 billion during the first quarter.
As part of the move, the company is raising its prices for Paramount+ subscriptions. The top tier of Paramount+ will rise to $11.99 per month from $9.99 per month.
The cheaper, ad-supported Essentials tier, which will not include Showtime, will increase to $5.99 from $4.99 per month. Consumers who already pay for the Paramount+/Showtime bundle will not be affected by this price increase.
Revenue in the TV Media segment fell 8% year over year to $5.19 billion. Advertising revenue declined 11% year over year to $2.26 billion, reflecting weakness in the global advertising market and fewer NFL games on CBS.
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