Paramount Skydance is linking its initial post-merger Paramount+ price adjustment directly to an intensified streaming strategy. This strategy relies on increased content expenditure and a rebuilt technological foundation. This move will be an important evaluation of David Ellison’s vision for a large-scale, “tech-forward” Direct-to-Consumer (DTC) platform. Starting January 15, 2026, the Paramount+ Essential plan in the US will see a $1 increase to $8.99 (€8.30) per month. The Premium tier (including Showtime) will rise to $13.99 (€12.90). Simultaneously, free trials will be discontinued, and discounts will be reduced.
The company describes this adjustment as a means to reinvest in the user experience, a stronger content lineup, and new rights, notably a long-term UFC agreement. Similar adjustments have either been implemented or announced in Canada and Australia. Currently, there are no new price increases planned for European markets, where Sky Showtime is replacing Paramount+ in certain areas. This price change occurs after Paramount Skydance’s first combined Q3 results, which showed revenue of approximately $6.7bn (€6.2bn), falling short of market expectations. However, DTC revenue increased by 17%, traditional TV decreased by 12%, and film revenue rose by around 30% due to Skydance titles.
The group has raised its cost-savings target to at least $3bn (€2.8bn) and anticipates $30bn (€27.6bn) in revenue for 2026, supported by an incremental programming investment exceeding $1.5bn (€1.4bn). For distributors and advertisers, the 2026 US price increase is being presented as a crucial Average Revenue Per User (ARPU) test of the strategy. Can a more expensive Paramount+, featuring enhanced sports and entertainment content, maintain and expand its global subscriber base of over 79 million? A significant technology reset is central to this. Management has affirmed plans to consolidate the currently fragmented backend across Paramount+, Pluto TV, and BET+ onto a unified platform, including a migration to Oracle-based infrastructure. The objectives are to enable shared identity, cross-promotion, simpler upgrades between free and paid tiers, and a common product development approach.
In advertising, Paramount is expanding its EyeQ premium video platform globally to aggregate inventory from Paramount+ and Pluto TV. Unified targeting and measurement are intended to boost yields from the growing ad-supported user base. Executives are also indicating a greater utilization of AI for personalization and recommendations across all services. "It will be an early test of David Ellison’s plan to create a scaled, “tech-forward” DTC player," said company representative.