The company had previously said it would merge its Paramount+ and Showtime streaming services into one offering, noting that the combination would show "how we can leverage our entire collection of content to drive deeper connections with consumers and greater value for our distribution partners."
The move comes amid heated competition in the streaming space. Warner Bros. Discovery (WBD) on Tuesday launched its new Max streaming plans, priced between $9.99 and $19.99.
Paramount shares gained as much as 3.6% on Tuesday on the heels of the news. Still, the stock is down more than 10% year-to-date and nearly 55% compared to this point in 2022.
Paramount's new offering, which it described as its "cornerstone" service, will be available alongside its ad-supported Paramount+ Essential plan and its free ad-supported service Pluto TV.
As previously announced, Paramount+ with Showtime will cost $2 more than the previous price for a Paramount+ subscription. Paramount also said its Paramount+ Essential Plan will be $5.99 a month versus the previous $4.99.
The Showtime brand includes popular series like "Dexter," "Billions," and "Yellowjackets" while Paramount+ boasts top franchises such as "Tulsa King, "Star Trek," and "SpongeBob," in addition to films like "Top Gun" and live events like the NFL.
Paramount+ reported global subscribers of 60 million in its fiscal first quarter results earlier this month.
As a result of the merger of the two streaming services, the company previously said it'd take a content impairment charge between $1.3 billion to $1.5 billion in the first quarter, but it expects $700 million in future annual expense savings.
That, coupled with the price hikes on its streaming tiers, should help lift revenues and ease pressures on the bottom line, with management guiding a return to positive free cash flow and earnings growth in 2024. Free cash flow came in at negative $554 million in the first quarter versus the prior year period's $243 million.
The company also announced a dividend cut when it reported first-quarter earnings, sending its stock down nearly 30%.