Paramount’s streaming service always seems to be having a bit of an identity crisis.
It was originally launched in 2014 as CBS All Access, with the main draws being complete access to CBS’s library of legacy shows, though for many the real draw was “Star Trek: Discovery” and “The Good Fight,” the cultishly loved spin-off of “The Good Wife.”
Long story short, in 2019 CBS consolidated (or re-consolidated) with Viacom, which owns MTV, Comedy Central, Nickelodeon and many other brands that defined the heyday of basic cable. The newly merged company rebranded itself ViacomCBS, and is now known as Paramount Global (PARA).
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CBS All Access rebranded as Paramount+ in 2021, but the service has struggled in the streaming wars, hitting 46 million subscribers in the the third quarter of last year, putting it well outside of the “Big Three” of the streaming game (HBO Max, Disney+ and Netflix).
To be fair here, Paramount+ did get a major boost at the end of the fourth quarter to 77 million subscribers, thanks to “Top Gun: Maverick,” one of the biggest films of 2022. But that’s not the sort of event that’s easily repeatable.
Paramount+ Has Struggled For Traction
While sometimes there’s a clear, identifiable reason why something doesn’t work in the entertainment industry, Paramount+’s overall failure to launch is likely a mishmash of several different factors.
While the entertainment industry and investors might recognize Paramount as a storied brand, most viewers don’t really care that much about film studios and corporate parents, with very few exceptions, and Paramount+ just doesn’t have the pizzazz of Disney+.
While Paramount+ has access to material from across the MTV, Comedy Central and CBS library, it arguably doesn’t do enough to make prospective subscribers know about this. (By comparison, HBO Max relentlessly trumpets that it has back catalog hits like “Friends” and “The Sopranos.”)
It also has a very limited number of buzz-worthy originals, and even then, Paramount Global continues to make strange decisions. Quite frankly, it’s a major strategic error that fans can’t watch the latest season of their favorite show “Yellowstone,” right now, and will have to wait until the summer due to a series of licensing deals.
But the main culprit is that there’s just too many streaming services these days, and people have limited time, money and attention spans. Contrary to what some might think, not every studio and company needs its own streaming platform.
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The Price Hikes Are Coming
Paramount Global seems to realize it has a problem with its streaming service and is trying to right the ship.
Both the streaming service and Showtime linear pay-TV channel will rebrand as Paramount+ with Showtime, which is a mouthful but at least tells consumers what they’re getting. (Mostly, anyway, as popular series like “Weeds” and “Dead Like Me” have begun quietly disappearing from the platform lately.)
The move has brought about a wave of corporate shake-ups, as former MTV head Chris McCarthy will be taking over Showtime, and has announced that the platform will be tripling down on franchises, including spin-offs of “Billions” (titled “Millions” and “Trillions”) and a prequel to “Dexter.”
But the budget for all this new content has to come from somewhere. So the advertising-free premium streaming plan will rise from $9.99 per month for Paramount+ to $11.99 for the new Paramount+ with Showtime. The advertising-supported, essential plan will rise from $4.99 a month to $5.99.
Paramount also announced that it expects an impairment charge of $1.3 billion to $1.5 billion in the first quarter of 2023, and that this year will be the company’s peak investment year for streaming.
