Paramount+ fundamentally restructured its business model on January 15, 2026, raising subscription prices while eliminating free trial access for new users. The timing coincides with an exclusive 7-year, $7.7 billion UFC broadcasting deal launching nine days later, signaling a shift toward profitability-focused streaming that prioritizes revenue per user over subscriber growth.
The Price Restructuring Takes Effect
Essential monthly subscriptions increased from $7.99 to $8.99, while Premium rose from $12.99 to $13.99. Annual plans saw steeper jumps: Essential climbed 50 percent from $60 to $90, and Premium increased 16.7 percent from $120 to $140. Simultaneously, Paramount+ removed free trial access entirely, requiring new subscribers to pay immediately without sampling the service first.
David Ellison, chairman and CEO of Paramount Skydance, framed the increases as necessary investment in programming and user experience in the company’s November 2025 earnings letter. However, the elimination of free trials raises practical concerns. Industry data shows free trial conversion rates vary widely by trial type, with automatic opt-out trials converting approximately 48 to 50 percent of users into paying subscribers, meaning their removal creates immediate friction for cost-conscious viewers considering sign-up.
Strategic Timing Around UFC Launch
On January 24, 2026, UFC 324 debuts exclusively on Paramount+, marking the start of the broadcaster’s new rights agreement. The deal includes 13 numbered events and 30 Fight Nights annually across all subscription tiers, with no additional pay-per-view fees. This represents a significant shift from the UFC’s previous model dating back to 1993.
Paramount is positioning sports as a retention anchor, layering UFC onto existing NFL and UEFA Champions League coverage. The company projects more than $1.5 billion in incremental programming spending for 2026 across UFC, original series, and theatrical releases. Yet new subscribers face a barrier: they cannot test the service before committing payment, even to access the UFC archive of over 1,400 fights and event programs.
Competitive Positioning in a Crowded Market
Paramount+ Premium now sits at $13.99 monthly, positioned between budget options and premium tiers. Apple TV+ costs $12.99 ad-free, while Disney+ Premium is $18.99, HBO Max Standard is $18.49, and Netflix Premium reaches $24.99. With 79.1 million global subscribers as of Q3 2025, roughly 60 million in the U.S., Paramount must justify its pricing against established competitors.
The company ended Q3 2025 with streaming revenue up 24 percent to $1.04 billion, yet posted a net loss of $257 million tied to merger-related expenses and restructuring. Paramount carries $13.6 billion in debt against $3.3 billion in cash, making profitability targets urgent rather than aspirational.
Subscriber Fatigue and Churn Risk
Industry data reveals mounting pressure on retention. In the past six months, 31 percent of paid subscribers canceled at least one video streaming service. Subscription fatigue is rising: 41 percent cited fatigue as their reason for cancellation, up from 35 percent in July 2025. When prices increase, churn typically spikes 15 percent immediately on average.
Paramount faces particular vulnerability with younger viewers. Forrester’s 2025 data shows Paramount+ ranks second to last in monthly usage among Gen Z and fifth across all age demographics, trailing Netflix, Disney+, Prime Video, and Peacock. This demographic is both price-sensitive and quick to cycle subscriptions, making price increases feel sharper.
The Broader Industry Spiral
Paramount+ is not pricing in isolation. Netflix raised prices in early 2025, moving Standard to $17.99 and Premium to $24.99. Disney+ and HBO Max both increased prices on October 21, 2025. As subscription stacking becomes painful, bundling emerges as streaming’s survival strategy. Comcast’s StreamSaver bundles Netflix with ads, Peacock with ads, and Apple TV+ for $15 monthly. Disney bundles Disney+ and Hulu with ads at $12.99, representing roughly 17 percent value versus standalone pricing.
Paramount has embedded into fewer broad bundles, potentially limiting reach as convenience becomes the deciding factor for consumers. The company projects 2026 revenue of $30 billion, about 4 percent growth, with DTC driving acceleration. It expects a strong increase in Paramount+ average revenue per user from the January price change and a beneficial mix shift in its subscriber base. If churn rises faster than revenue per user gains, profitability targets collapse. The margin for error is thin, and every cancellation signals whether Paramount’s gamble on profitability-first streaming will hold.
Sources:
Paramount Global Q3 2025 Earnings Report and Shareholder Letter. Paramount Global, November 2025
Paramount+ Official Pricing Announcement. Paramount, January 15, 2026
UFC and Paramount Broadcast Rights Deal Press Release. UFC, August 2025
The State Of Streaming Services, US 2025. Forrester, January 2026
Video Streaming Subscription Fatigue Survey. CivicScience, January 2026
Customer Retention Economics Research. Bain & Company, 2025