Paramount to raise streaming prices as ad slump weighs on revenue
Paramount Global Inc (PARA.O) said on Thursday it would raise prices of its flagship streaming service in some markets after reporting a lower-than-expected quarterly revenue, as a broader slump in the advertising market hit the CBS network owner.
Shares in the company fell 7% before the bell. The stock has gained about 45% since the start of 2023 to Wednesday’s close.
Rising prices, higher borrowing costs, easing consumer demand across products and services, and geo-political unrest in certain regions have forced companies to pull back on advertising spending.
TV advertising revenue fell 7% in the three months to December, despite a lift from political advertising on the back of U.S. mid-term elections in November.
Paramount+ added a record 9.9 million subscribers, partly due to the streaming release of hit film “Top Gun: Maverick”, as the business cushions the company in the face of increased cord-cutting.
The company last month said it would integrate Showtime, known for popular shows, including “Billions,” “Yellowjackets” and “Dexter”, with Paramount+ across platforms later this year as it prioritizes streaming services.
This report’s information was first seen on REUTERS; to read more, click this link.
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