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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