"Billions"
Paramount CEO: Not Interested in $3B Showtime Offer, Streaming Platform Won’t Be in Less-Expensive Paramount+ Essentials Subscription Tier
March 8, 2023
Paramount Global’s planned integration of the Paramount+ and Showtime Anytime subscription streaming video services this year will include monthly rate hikes, and Showtime will not be made available on the lower-priced, ad-supported Paramount+ Essentials subscription tier.
That’s according to CEO Bob Bakish, speaking March 8 at the Morgan Stanley Technology, Media and Telecom Conference in San Francisco, who reiterated past comments on the projected $700 million in synergistic savings, planned $2 and $1 respective monthly rate hikes for Paramount+ Premium and Essentials tiers, and future content focus surrounding legacy Showtime content brands, including “Billions,” “Your Honor,” “Yellowjackets,” “Ray Donovan” and “Dexter,” among other titles.
Bakish disclosed that Showtime would not be available to the pending priced $5.99 Paramount+ Essentials option when the two platforms integrate. It will be available on the pending $11.99 priced Paramount+ Premium tier.
“You’ll have to buy the more expensive version [of Paramount+] to get Showtime,” Bakish said.
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The CEO noted Paramount+ is not among the SVOD price leaders, which he said include around $20 monthly for Netflix’s top tier and $15.99 for HBO Max.
“So, we are very comfortable raising prices on Paramount+,” Bakish said.
Paramount ended 2022 with 77 million paid subscribers across Paramount+, Showtime OTT, Noggin and BET+, among others. Company guidance is an estimated 100 direct-to-consumer million subscribers in 2024, a tally Bakish said could be impacted following the integration and price hikes.
In a surprise, Bakish admitted the company received an unsolicited $3 billion offer for Showtime, a bid the CEO said senior management wasn’t considering. The Wall Street Journal reported that former Showtime executive David Nevins made the offer backed by private equity firm General Atlantic.
“The reality is that [the offer] was not that interesting to us,” Bakish said, adding that management’s internal “value plan” projections for Showtime are for more valuable.
“It just didn’t make sense to divest the asset anywhere near that price,” Bakish said. “We think there’s enormous value to unlock with the integration of Showtime and Paramount+.”