Paramount Global said its streaming business grew in the fourth quarter and that it aims to raise Paramount+ rates this year.
When Paramount+ and Showtime merge later this year, the price increases will take effect. CFO Naveen Chopra announced Thursday that the premium tier of Paramount+, which will include Showtime, will increase to $11.99 from $9.99, while the lower-priced tier, which will not contain Showtime, will increase by $1 to $5.99.
The pricing increases and merger with Showtime will occur in the third quarter.
Over the fourth quarter, Paramount+ attracted 9.9 million subscribers. During the fourth quarter, Paramount+ reached approximately 56 million customers.
While the difficult advertising market weighed on Paramount’s revenues, as previously predicted, the company’s direct-to-consumer streaming division increased by 4%. Advertising income declined 5%, with the overseas market accounting for the majority of the decrease.
Due to the loss in advertising, total fourth-quarter revenue fell 7% year over year to around $5.9 billion.