"While free trials can juice a streamer's growth, they allow binge-watchers to plow through content and cancel before becoming a paying customer. Paramount Skydance CEO David Ellison said he wants to better balance revenue and profits. "While we remain committed to achieving scale from a subscriber perspective, we will prioritize quality growth that delivers strong returns," Ellison said in his quarterly shareholder letter."
"Besides price hikes and password-sharing crackdowns, media companies have found another way to make streaming more profitable: cutting back on free trials. Paramount+ is the latest streaming service to retire its free trial, following the lead of rivals like Netflix, Disney+, and HBO Max. The move comes as Paramount Skydance's flagship streamer approaches profitability, after growing its subscriber base 10% to 79.1 million in the third quarter."
Paramount+ ended its free trial and implemented a $1 monthly price increase for both plans to emphasize profitability and quality subscriber growth. The streamer grew subscribers 10% to 79.1 million in the third quarter and is positioning itself to deliver stronger returns. CEO David Ellison said the company will move away from low-margin subscriptions by cutting back in certain international markets and reviewing discounting practices. The decision follows similar moves by Netflix, Disney+, and HBO Max, while some competitors such as Hulu and Prime Video still offer free trials. Analysts note price hikes may raise revenue but modeling impacts remains uncertain.
Read at Business Insider
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