Paramount Global said it will integrate its Showtime streaming service into the premium tier of Paramount Plus, which will be rebranded as Paramount Plus with Showtime.
The change, which also encompasses the name of the legacy premium service, is expected to take place later this year. Pricing for the new Paramount Plus with Showtime tier was not disclosed. Paramount has been offering a streaming bundle of Paramount Plus and Showtime at a discounted price of $11.99 a month.
Like other traditional media companies, Paramount has been looking to manage growing the streaming business amid the linear channels' decline. By combining its streaming services, Paramount hope to be able to focus its spending on programming and marketing while completing against bigger players like the Walt Disney Co. and Netflix.
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Warner Bros. Discovery is also working on combining its HBO Max and Discovery Plus streaming services this spring.
“This new combined offering demonstrates how we can leverage our entire collection of content to drive deeper connections with consumers and greater value for our distribution partners,” said Paramount Global CEO Bob Bakish in a memo to staff Monday. “This change will also drive stronger alignment across our domestic and international Paramount Plus offerings, as international Paramount Plus already includes Showtime content. And, very importantly, this integration will unlock operational efficiencies and financial benefits across our broader portfolio.”
Bakish said that Chris McCarthy, president Paramount Media Networks, will continue to lead the Showtime studio and oversee operations for the linear channel.
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Tom Ryan, president and CEO streaming, will oversee the Paramount Plus with Showtime streaming business.
“While we are confident this is the right move for our company, our consumers, and our partners, we know this change brings uncertainty for the teams working on these brands and businesses. We are committed to being as transparent and thoughtful as possible throughout this process, and we expect to share additional details in the coming weeks,” Bakish said.
McCarthy said the company will be holding a town hall meeting in Los Angeles on February 23 to go over details of the combination.
“As a part of Paramount Plus, we can put more resources into building out the lanes that have made the Showtime brand famous, as well as turning our hit shows into global hit franchises,” McCarthy said in a memo to staff. “To do this, we will divert investment away from areas that are underperforming and that account for less than 10% of our views. We have already begun conversations with our production partners about what content makes sense moving forward and which shows have franchise potential.”
Ryan said Paramount Plus has been leading the industry in signups and gross subscriber additions.
“By further integrating Showtime into Paramount Plus, we will now be able to deliver a seamless, fully integrated multiplatform premium service to our consumers with more of the original, culture-shaping content they love. This enhanced offering serves our audiences and our creative partners – with an even greater ability to scale our franchises and build hits across the Paramount Plus universe in linear and streaming,” Ryan said. ■
