Paramount+ raises prices across all subscription plans

Paramount+ is getting more expensive. The company also confirmed that it was raising prices for both its ad-supported Essential plan and ad-free Premium plan, while doing away with free trials for new users. Here’s how the new rates look and where the math shakes out.

Here’s what the new Paramount+ prices look like

The ad-supported Paramount+ Essential plan increases from $7.99 to $8.99 a month. Its yearly subscription rises to $89.99. At the new monthly price, an annual subscription to Essential billed month-to-month would cost $107.88, so the annual plan now saves you $17.89.

The ad-free Paramount+ Premium plan goes up from $12.99 to $13.99 a month. The Premium annual plan goes up to $139.99. That annual option shaves $27.89 off that total if you take the new monthly rate for a year.

Those savings are significantly thinner than they were. Under the previous pricing, both tiers amounted to a net of $35.89 in annual savings over paying monthly, so the difference between choosing month-to-month and committing for a year has closed.

Paramount+ ends free trials for all new subscribers

Paramount+ has decamped from the free-stuff frontier. That takes away a frequently exploited test-drive period that many of these subscription services have relied on to reduce sign-up friction and show off their tentpole programming before the first bill lands. The company said that current members are remaining on their existing billing cycle, and the new pricing kicks in at some point after the change.

Industry data firms like Antenna have long observed that trial sign-ups are higher-churn cohorts compared to paid sign-ups, so ending trials can lower promotional costs and lift near-term revenue per user despite stripping a bit of acquisition.

Why the hike in industry pressures and programming costs

Paramount framed the increases as a component of a larger effort to enhance streaming economics. But, like its rivals, the company is grappling with the cost of premium originals and live rights at a time when investors are demanding that streaming losses diminish. Paramount+ is relying on franchises like the universe of Star Trek and Halo, live sports, and big entertainment events that come with increasingly expensive rights fees.

The move also comes amid corporate consolidation after the Skydance merger and a current efficiency push. On the company’s most recent earnings call, execs pointed to pricing discipline and curation of content — similarly industry-trended by competitors like Netflix, Disney+, Max, and Peacock, all of which have instituted multiple price raises in recent years according to company announcements and analyst notes from firms such as MoffettNathanson or Ampere Analysis.

How much you’ll pay and where you still save

If you are willing to put up with ads, Essential now costs $8.99 a month or $89.99 for the year. The annual plan’s $17.89 in savings compared with paying monthly is certainly not an earth-shattering amount, but it is the lowest-cost route if you’re confident that you’ll watch Paramount+ for the long term.

If you want to watch without commercials, Premium is $13.99 a month (or $139.99 yearly). The $27.89 annual saving is a bigger deal for heavy viewers who crave uninterrupted original programming, something the narrower library of on-demand originals will provide in spades along with full-HD video quality and access to the Premium feature set with no commercials or playback restrictions. Just bear in mind that annual billing will require you to pay upfront, so weigh the discount against flexibility.

Smart strategies to offset streaming price increases

• Look for packages you already have. Some retailer memberships, like Walmart+, come with Paramount+ Essential at no additional cost. Wireless carriers and pay-TV providers are also offering streaming deals for a limited time; check your account details to avoid paying double.
• Consider rotating services. Analyst research from Kantar and Antenna shows the rise of “subscription cycling,” where households take a break from one service and pick up another to match their current watchlist. If you’re between releases of new programs on Paramount+, a pause for a month or two can help mitigate any increase.
• Make a note to re-evaluate ahead of your annual renewal. If your viewing habits change or better packages come along, you’ll want the freedom to pivot instead of being stuck with a higher auto-renew rate.

Bottom line on Paramount+ pricing changes and trials

Paramount+ is part of a long parade of streamers that are rejiggering price and product mix in hopes of turning profitable. Essential moves to $8.99 per month or $89.99 annually, while Premium checks in at $13.99 per month (or $139.99 each year, as there’s a better price for annual buyers). With free trials ending for new users, the calculus is moving toward bundles, annual commitments, and more thoughtful cycling in order to maintain your streaming budget.