Paramount price hike
Starting August 20, Paramount is increasing the cost of its ad-free Paramount+ With Showtime plan by $1, to $12.99/month and the Paramount+ Essential plan (with ads) by $2, to $7.99 per month for all new subscribers. For existing Paramount+ With Showtime subscribers, the new price will go into effect in late September. Existing subscribers to Paramount+ Essential will not see an increase. Paramount is joining a parade of streamers increasing prices, with WBD’s recent hike of Max’s ad tiers and Peacock’s plans will increase in July.
The Circana Take:
- In contrast to most SVOD rate increases, this one for Paramount+ lessens the gap between plan tiers. Indeed, services are working towards getting their advertising plus subscription revenues to the same level as subscription-only revenues from ad-free tiers.
Dish to bundle Netflix for free
Dish Network is bundling Netflix's Standard with Ads plan free for new and existing customers who renew for two years. Customers can also choose to apply a $7 monthly credit toward one of Netflix’s higher-priced, ad-free tiers. Dish is trying to offset diminishing satellite TV subscribers by offering Netflix as a way of retention and bringing in new customers. Last month, Comcast launched its Streamsaver bundle, offering Xfinity customers Apple TV+, Netflix and Peacock for $15/month. It is notable that nearly two-thirds of households have Netflix and three-quarters of subscribers consider it a must have service, making Netflix an essential service for many.
The Circana Take:
- Look for more companies to leverage top SVODs to bolster their appeal to consumers. And expect to see more bundles as SVOD services are trying to grow in a mature market.