It is very important to raise the streaming prices because the decrease in advertising reduces the revenue | – #important #raise #streaming #prices #decrease #advertising #reduces #revenue
Feb 16 (Reuters) – Paramount Global Inc ( PARA.O ) to pioneer streaming service in some markets this year prices will raise, the owner of the CBS network said Thursday, amid prolonged weakness in the advertising market that has pressured revenues.
Shares of Paramount, formerly known as ViacomCBS, fell 1.5% in a broadly weak market. They fell as much as 8% in premarket trading.
The Tom Cruise blockbuster “Top Gun: Maverick” gave the ad-dependent media company some respite into 2022, but it now faces companies and consumers looking to further rein in spending to prepare for a possible recession.
However, Chief Executive Bob Bakish said the company was seeing “some early signs of stabilization in advertising.”
Paramount said in November USAin the background of mid-term elections political despite the increase in advertising, the income from television advertising decreased by 7% in the October-December period.
Paramount is betting on the final installments of spy film Mission Impossible and horror film Scream later this year to avoid an advertising slump.
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The company will increase the prices of the premium and basic tiers of its Paramount+ streaming service in some markets. Prices It will increase from $9.99 to $11.99 per month for the premium tier that includes Showtime, and from $4.99 to $5.99 for the basic tier without Showtime.
Paramount+ is set to integrate later this year with Showtime, the company’s other streaming platform that hosts popular shows like Billions and Dexter. It is 1.3 in the current quarter from integration billion 1.5 from the dollar billion devaluation pending payment to the dollar.
“The price increase for Paramount+ is good for the ARPU (average revenue per user) numbers, but it could slow the growth rate (of users) to some extent,” said Huber Research analyst Craig Huber.
Paramount+ added 9.9 million new subscribers in the quarter ended Dec. 31, but the direct-to-consumer division continues to struggle with losses due to heavy investments in content.
Paramount shares are up nearly 40% this year. Shares of the media company are up nearly 40% this year.
Overall, Paramount, according to Refinitiv data, 8.16 billion 8.13 billion, compared with expectations for profit of 23 cents on the dollar of revenue dollars on earnings of 8 cents per share.
Reporting by Eva Mathews in Bengaluru and Helen Coster in New York; Added by Yuvraj Malik report; Edited by Sriraj Kalluvila
Our standards: Thomson Reuters Trust Principles.
2023-02-17 03:48:56
Source – reuters
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