Bob Bakish, the CEO of ViacomCBS, recently announced that Paramount+, the company’s streaming service, is planning to raise its prices once again. This decision comes as no surprise, considering the rapid growth and success of the platform. In a world where streaming services have become increasingly popular, it is essential for companies like Paramount+ to adapt and evolve.
Bakish’s statement reflects a strategic move aimed at maximizing profits and sustaining the platform’s growth. By raising prices, Paramount+ can invest in more original content and enhance user experience. This approach aligns with basic economic principles: as demand for a product or service increases, so does its value.
“Our plan is to raise prices again — this isn’t our only price increase,” Bakish said Wednesday at the Goldman Sachs Communacopia + Technology Conference in San Francisco. “Whether we do that in ’25 or ’24, we’ll see.”
The company revealed in May that the monthly price of its premium tier would go up from $9.99 to $11.99.
Bakish detailed that the move did not bring down subscriber growth. He added, “That proves that we have pricing power in the marketplace, given the content we’re bringing to bear on the platform,” noting that he believes “there’s a lot of room to run there.”
This decision may not be met with open arms by all subscribers. Some users might argue that they are already paying a substantial amount for multiple streaming services and cannot afford another price hike. It is crucial for companies like Paramount+ to strike a delicate balance between profitability and customer satisfaction.
Bob Bakish’s announcement highlights the competitive nature of the streaming industry. As more players enter the market, companies must continuously innovate to stay ahead. Raising prices may be an inevitable step towards securing long-term success in an ever-evolving landscape.
Bakish called Paramount+ with Showtime the “definitive multiplatform product,” allowing consumers to access its offerings in a multitude of ways. He stressed, “We see it as a natural evolution of the business to work with key distributor partners to offer channel in both [streaming and cable]. We’re indifferent to how subscribers get it. I bet you we grow our linear share versus competitors because of that.”
Bob Bakish’s plan to raise prices on Paramount+ reflects a strategic move aimed at sustaining growth in an increasingly competitive market. While this decision may face some resistance from subscribers who are already burdened by multiple streaming subscriptions, it ultimately serves to enhance user experience and invest in quality content. As technology continues to advance and consumer preferences shift, it is imperative for companies like Paramount+ to adapt their pricing strategies accordingly.
Photo Credit: paramount.com
