Paramount+ Price Hikes Signal a New Era of Streaming Investment
The streaming wars are about to get a little more expensive. Paramount+, fresh off the closing of its Skydance Media acquisition, is preparing to raise prices on its subscription tiers in early 2026, a move that mirrors a broader industry trend: betting big on content to justify higher consumer costs. But this isn’t simply about keeping pace with competitors; it’s a strategic shift signaling a new phase of investment and a clearer focus on profitability under the leadership of David Ellison.
The Price is Right… For Content
Starting January 15, 2026, Paramount+ Essential (ad-supported) will climb to $8.99 per month, while Paramount+ Premium (ad-free) will reach $13.99. Annual plans will also see increases, landing at $89.99 and $139.99 respectively. These adjustments, following similar increases in August 2024, aren’t isolated incidents. Paramount+ has already announced price increases in Canada and Australia, demonstrating a global strategy. Ellison has explicitly stated these changes are designed to “fuel continued reinvestment in the user experience and deliver an even stronger slate of programming.” The question is, will consumers accept these increases, and more importantly, will the content justify them?
UFC, South Park, and a $1.5 Billion Content Push
Paramount+ isn’t raising prices on a whim. The company is backing up its ask with significant content investments. The recently secured seven-year, $7.7 billion deal with UFC is a major cornerstone, making Paramount+ the exclusive home for MMA events. Equally impactful is the five-year, $1.5 billion agreement with Matt Stone and Trey Parker, the creators of South Park, which Ellison highlighted as a key driver of subscriber acquisition in Q3. These aren’t just about securing popular content; they’re about building exclusive offerings that differentiate Paramount+ in a crowded market.
The Film Slate Expansion
Beyond sports and animation, Paramount+ is ramping up its film production. The company plans to release 15 movies annually, a significant increase that will require substantial investment. This expansion, coupled with investments in Paramount+ originals and third-party licensing, will see over $1.5 billion allocated to programming in 2026. This aggressive content strategy is a direct response to the competitive landscape and a bet on attracting and retaining subscribers.
Subscriber Growth and the Shift to Paid Metrics
Despite the price increases, Paramount+ is showing signs of growth. The streamer ended September 2025 with 79.1 million subscribers, a modest increase from 77.7 million the previous quarter. However, a key change is on the horizon: starting in Q4 2025, Paramount+ will only report paid subscriber numbers, excluding those on free trials. Currently, 1.2 million subscribers are on free trials. This shift indicates a focus on sustainable, revenue-generating subscribers rather than vanity metrics.
The Skydance Acquisition and the Path to Profitability
The $8 billion acquisition of Paramount Global by Skydance Media is central to this strategy. The merger has unlocked efficiencies and allowed for a more streamlined approach to content investment and distribution. Paramount Skydance reported a 17% year-over-year increase in direct-to-consumer revenue, reaching $2.17 billion, with Paramount+ revenue contributing $1.04 billion – a 24% increase. The company also saw improved adjusted operating income, driven by revenue growth and content expense benefits resulting from the merger’s accounting changes.
What Does This Mean for the Future of Streaming?
Paramount+’s moves are indicative of a larger trend in the streaming industry. The era of rapid subscriber growth at any cost is over. Companies are now prioritizing profitability and sustainable growth, which means a willingness to raise prices and a laser focus on delivering content that justifies those increases. The success of this strategy will depend on Paramount+’s ability to consistently deliver high-quality, exclusive content that resonates with viewers. Statista data shows a growing consumer willingness to pay for premium streaming experiences, but only if the value proposition is clear.
The coming year will be crucial for Paramount+. The January 2026 price hikes will be a test of consumer loyalty, and the success of the UFC and South Park deals will be closely watched. Ultimately, Paramount+ is betting that a combination of compelling content and a strategic focus on profitability will position it for long-term success in the increasingly competitive streaming landscape. What are your predictions for the future of streaming prices and content investments? Share your thoughts in the comments below!
