Paramount Global Introduces Ad-Supported Streaming Option in Europe

Published On: November 10, 2024 10:25 am

Paramount+ Launches Ad-Supported Tier in the UK and Ireland, Shares Take a Hit

The introduction of an ad-supported streaming tier has sparked debates among viewers and analysts alike. While some believe it enhances accessibility, others see it as a double payment akin to traditional cable. Paramount+ now offers this option in Europe, yet their stock fell over 4% as trading closed on Friday, signaling investor concerns.

Details on the New Tier

A report from Techradar shared that Paramount+ users in the United Kingdom and Ireland can choose this new, more affordable option if they are open to watching ads. For those seeking a more premium viewing experience, a higher-priced tier will allow for ad-free streaming. This move mirrors actions taken by larger competitors like Netflix (NFLX).

Are We Back to Cable?

As new ad-supported tiers proliferate, some analysts question whether streaming services are recreating the cable TV experience online. Paramount’s foray into ad-supported offerings marks its first step in Europe, but with multiple services adopting similar models, the distinction between cable subscriptions and streaming packages fades away.

Investment Outlook for Paramount Stock

Regarding Wall Street’s perspective, PARA stock has a Hold consensus rating derived from three Buys, seven Holds, and four Sells in the last three months. After enduring a 7.38% decline in share price over the last year, analysts set an average price target of $12.55, suggesting a potential upside of 13.47%.