Paramount+ reaches 56M subs, raises prices as it combines with Showtime

Following nan awesome integration of Showtime into Paramount+ 2 weeks ago, Paramount reported its quarterly net this morning, announcing that Paramount+ gained 9.9 cardinal subscribers successful Q4 to bring nan full to 56 cardinal subs, up from 46 million successful nan erstwhile quarter. This intends Paramount+ has much customers than Hulu, which recently reported 48 cardinal subs. The institution besides confirmed it would raise prices crossed its work owed to its operation pinch Showtime.

However, Paramount+ hardly missed expert expectations, who predicted a nett summation of 10 cardinal subscribers. Across Paramount+, Showtime, BET+, and Noggin, nan institution grew by 10.8 cardinal direct-to-consumer (DTC) subs, reaching a mixed full of 77 cardinal customers.

Paramount revealed during its net telephone that it would nary longer study full mixed DTC subscribers starting successful Q1 2023.

Paramount’s free, ad-supported streaming work Pluto TV saw an summation successful world monthly progressive users, bringing its caller full to 78.5 million. Rival Tubi, connected nan different hand, only has 64 cardinal monthly progressive users.

The astir important news of nan 4th for nan streamer was nan announcement that, later this year, it would beryllium integrating Showtime into its platform. “Paramount+ pinch Showtime” will straight compete with Warner Bros. Discovery’s upcoming HBO Max/Discovery+ service.

During nan net call, nan institution announced that it would beryllium expanding nan pricing of its Paramount+ Premium tier from $9.99/month to $11.99/month to bespeak nan caller Showtime content. The Essential tier, which won’t see Showtime, is moving from $4.99/month to $5.99/month. Existing and caller customers will spot nan value changes erstwhile Paramount+ pinch Showtime launches successful early Q3 2023.

Customers were expecting a value summation aft CEO Bob Bakish confirmed nan plans successful December.

As a consequence of nan consolidation, nan institution warned investors that it expects a simplification successful full subscribers successful Q1 2023 since nan Showtime subscriber guidelines includes some subscribers who usage nan Paramount+ and Showtime bundle, which launched past summer, aliases subscribe to some streaming services independently.

Also, nan institution revealed that its streaming losses widened again to $575 cardinal from $502 cardinal successful Q4 2021. Meanwhile, direct-to-consumer gross accrued 30% year-over-year, pinch subscriptions experiencing gross maturation of 48% year-over-year. Paramount+ gross jumped 81% year-over-year.

“Our contented and level strategy is moving and pinch moreover much exceptional contented coming this year, we expect to return nan institution to net maturation successful 2024,” Bakish wrote successful nan missive to shareholders.

The institution added that Paramount+ subscriber maturation was chiefly driven by its contented slate, including “Top Gun: Maverick,” which launched connected Paramount+ connected December 22, arsenic good arsenic nan NFL games and caller titles for illustration “Tulsa King,” starring Sylvester Stallone and scary film, “Smile.”