Here’s Why Streaming Services Keep Hiking Prices

The New Streaming Strategy

No, you’re not imagining it: Most streaming platforms are slowly but surely getting more expensive.

For a long time, streaming companies focused primarily on subscriber growth. But, in this economy, profits have become paramount – and streamers are putting the squeeze on customers. Last quarter, Disney’s (DIS) streaming business posted its first-ever profit. And Max-owner Warner Bros. Discovery (WBD) delivered a fully profitable year in 2023.

This shift comes as companies prioritize profitability through ad-supported subscription tiers, crackdowns on password sharing, and higher prices.

Prices Are Rising

Almost every major streaming company has increased prices over the past few years, according to a report by CNBC. Some companies have teamed up with other services to bundle subscriptions, which may obscure a unilateral price hike.

Disney+’s (DIS) ad-free tier will soon cost $15.99 per month – up from $10.99 in 2023. Paramount (PARA) and Showtime’s bundled offering will jump to $12.99 this month, adding a dollar per month from its previous price. Peacock’s (CMCSA) ad-free option now costs $13.99 per month, up from $11.99 in 2023.

And while there are plenty of companies to choose from, the number of different monthly plans are also proliferating. When signing up for a new service, customers are often faced with even more choices: whether or not they want to pay to skip ads, how many screens to authorize, and which bundle of channels they want.

Is Streaming Worth It?

Many subscribers have hung on despite the rising prices, suggesting that the value of streaming is still worth the cost — for now.

Since many of us pay for multiple streaming platforms, however, the total combined monthly cost could soon rival that of traditional cable TV. At some point, we may reevaluate how much is too much to pay for content.

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