Paramount Global said on Monday that it will increase US subscription prices for Paramount Plus beginning January 15, 2026, raising the ad supported Essential plan from $7.99 to $8.99 per month and the ad free Premium plan from $12.99 to $13.99 per month. The company also announced it will retire free trials for Paramount Plus and review discount practices, while investing in an updated technology stack for both Paramount Plus and the free ad supported service Pluto TV and exploring greater use of artificial intelligence for personalization and recommendations.

The price moves represent a clear revenue first pivot. The $1 monthly increase on each tier equates to a roughly 12.5 percent rise for the Essential plan and about a 7.7 percent rise for the Premium plan. For subscribers who remain, those increments are additive to monthly revenue and boost average revenue per user on those accounts by the same dollar amounts. The elimination of free trials removes a low cost pathway to acquisition, potentially lifting near term revenue but raising the bar for attracting new subscribers.

Paramount framed the changes as part of broader platform work. Upgrading the technology stack across Paramount Plus and Pluto TV is a technical bet that improving performance and recommendation quality will reduce churn and make advertising on both platforms more valuable. The company said it is assessing AI tools to enhance personalization, which could raise engagement metrics used to sell ad inventory and justify higher subscription prices for an improved viewing experience.

The combined strategy mirrors industry dynamics where streaming companies are balancing growth with profit pressures. After a decade of subscriber acquisition through promotions and free trials, many platforms are turning toward price increases, ad monetization, and product investment to lift margins. For consumers this means higher monthly bills and fewer trial opportunities to test services before committing, a trend that may accelerate subscription churn among price sensitive households but also increase revenue stability among loyal viewers.

Removing free trials and reviewing discount practices also alters marketing tactics. Heavy discounting and promotional bundles had been key levers for subscriber uptake and retention. Without them, content quality, personalization, and ad targeting effectiveness become more central to convincing viewers to pay. Paramount’s emphasis on AI driven recommendations highlights the trade off between higher short term revenue per subscriber and the need to deliver measurable improvements in engagement to prevent defections.

Regulators will watch how streaming companies use data and AI for ad targeting and personalization, an area of growing public scrutiny as platforms collect more behavioral information. For now, investors and analysts will be evaluating whether the modest price increases, combined with technology investments, translate into stronger margins without prompting outsized churn.

In sum, Paramount’s announcement is a snapshot of a maturing streaming market. The service is shifting from acquisition via incentives toward monetization through higher prices and targeted advertising, while betting on technology and AI to keep viewers engaged in an increasingly competitive landscape.