As promised earlier this year, Paramount+ is getting a less expensive, ad-supported tier that will be available starting June 7.
According to an FAQ page spotted by Android Police, the new Essential plan will be available for $4.99 per month or $49.99 per year. The new plan is replacing the old CBS All Access Limited Commercial plan, which won’t be available any longer for new or former subscribers.
In exchange for the lower price, Paramount+ Essential plan customers won’t be able to download content for offline viewing or get access to live local CBS channels. However, NFL on CBS and UEFA Champions League will be available via separate live feeds. They’ll also have to deal with limited commercial interruptions.
Existing Limited Commercial plan subscribers won’t be affected by the change and will get to keep their current plan price ($5.99/month or $59.99/year) and retain access to their local CBS channels.
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ViacomCBS ended the most recent quarter with 36 million global streaming subscribers after Paramount+ helped drive 6 million additions.
CEO Bob Bakish said that the new, less expensive tier will expand the total addressable market for Paramount+ and that it opens important new advertising inventory, which will be added to EyeQ, the company’s connected video advertising platform.
“We see the product actually generating higher ARPUs over time than the $9.99 [per month] product,” he said.
ViacomCBS also sees the ad-supported Paramount+ launch as an added advantage for working with distributors and meeting their different objectives. Bakish said that the $4.99/month product gives ViacomCBS more flexibility on promotions.