Prices are rising rapidly: Paramount+ is introducing new subscriptions with advertising!

Prices are rising rapidly: Paramount+ is introducing new subscriptions with advertising!

Streaming platforms are experiencing significant change as providers begin to adjust their pricing structures and introduce new subscription models. A current example of this is Paramount+, which is introducing a new basic subscription for 5.99 euros per month from June 5, 2025. However, this subscription includes commercial breaks and you can only stream one stream at a time. In addition, the price of the previous standard subscription increases from 7.99 euros to 9.99 euros per month, which corresponds to a price increase of 25%. Existing customers can pay the old price for now, but future price increases are likely. This shows that the tendency towards advertising-financed models cannot be rejected in this country, as oe24 reports.

Streaming providers such as Netflix, Disney+ and Amazon Prime have also relied on this model in recent years to increase their sales. The introduction of advertising in subscriptions represents a central lever for profitable growth. Marketing expert Thorsten Hennig-Thurau explains that in the past high future sales were aimed for, but the advertising factor is also becoming increasingly important. In the second quarter of 2024, Netflix saw an increase in users and revenue, as well as a 34% increase in advertising subscriptions compared to the previous quarter.

Changes in the streaming market

The selection of streaming services and subscription options is likely to become more confusing, which is already becoming apparent. Originally, platforms like Netflix offered ad-free flat rates at very reasonable prices. But newer providers such as Amazon, Apple and Disney have established alternative models that rely on advertising financing. Hennig-Thurau warns that more advertising can have negative consequences for users, as providers' interest in viewers could decrease. There is a conflict of interest between advertisers who want more advertising and viewers who refuse.

At the same time, more competition through the introduction of subscription-based models could lower prices and lead to a greater variety of offers, as Michel Clement explains. However, both experts assume that fewer streaming services will survive, as only large providers such as Disney, Netflix, Amazon and Apple are able to offer global and regional content. Smaller providers may struggle to remain relevant in the market, especially at a time when price increases are also expected.

Market analysis and future outlook

The streaming market size is expected to reach $202.11 billion by 2029, with a CAGR of 7.86% between 2024 and 2029. The largest market is North America, while Asia Pacific is considered the fastest growing market. These trends show how important it is becoming for providers to offer high-quality content and leverage innovative features to remain competitive. In the current year, the market size is already $138.45 billion, highlighting the high demand for subscription-based services, particularly regional content and live sports.

Additionally, advertising on streaming platforms receives more attention than on social media. A survey found that 64% of streamers in India are more receptive to advertising on streaming platforms. This suggests that ad-supported models could find wider acceptance. However, providers must still be careful not to lose users who are critical to advertising. The coming years will be decisive for how the market consolidates and which providers can survive in the long term, as stated in ZDF.