Entertainment giant Paramount Global announced on Monday that it will increase the cost of subscription plans for its streaming service Paramount+. The company’s stock saw a slight surge after the news came out, jumping close to 2%.
A number of streaming services have been hiking their prices in recent months as a way to increase profitability, and Paramount decided to follow suit. Its Paramount+ Essential plan will be $2 pricier, going from $5.99 to $7.99. The hike will just affect the new customers, while the existing Essential subscribers will continue paying the same price for the time being.
The Paramount+ with Showtime plan will go from $11.99 to $12.99, affecting both the new users and existing subscribers. The price hikes will take place starting August 20th for new subscribers and from September 20th for existing Paramount+ with Showtime subscribers.
The price hikes come after Paramount Global’s controlling shareholder, National Amusements, and its owner, Shari Redstone, pulled the plug on the proposed merger with media company Skydance. Redstone and Paramount’s leadership are currently exploring several options for the company’s future.
Paramount Global’s stock closed at $10.29 per share on Monday following the recent jump and is currently 28.54% down year-to-date.