(Bloomberg) -- Paramount Global is raising the price of its streaming service, part of a push by the TV and film giant to stem losses in its online business.

The advertising-free Paramount+ with Showtime will increase by $1 to $12.99 a month, the company said Monday. Paramount+ Essential, a service with ads, will rise by $2 to $7.99 for all new subscribers. The changes take effect on Aug. 20 for new customers, while current subscribers of Paramount+ with Showtime will see their bills increase around Sept. 20. 

Existing customers of the Paramount+ Essential will keep paying $5.99 a month, and the price of annual subscriptions to both plans will remain unchanged. Paramount+ hosts popular shows like Yellowjackets and Mayor of Kingstown.

Paramount, the parent of CBS and Nickelodeon, has been cutting costs to boost profitability, and the price increase will further that aim. The company and its chair, Shari Redstone, recently turned down a merger proposal from independent producer David Ellison and his Skydance Media.  

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