What's the cheapest way to stream? Here's which streaming services increased prices

Lianna Norman, USA TODAY NETWORK - Florida

If you’re a streamer, you’ve probably noticed a few changes with your streaming platforms over the last few months. Disney+, Hulu, Amazon Prime Video, Max, Paramount+, AppleTV+ and even YouTube Premium have all hiked prices recently, collectively increasing the cost of streaming.

And some economists gave the cost increase a name: Streamflation.

Over the summer, Netflix killed its cheapest ad-free option and the ability for multiple households or wifi networks to share one Netflix account. In October, the company raised the price of its premium plan to $23 each month and there’s a good chance it increases its ad-free prices a few months after the Hollywood actors strike ends.

Netflix has about four million more subscribers than it did at this time last year. But according to an October report from market research and consumer analytics platform CivicScience, there are more Netflix customers that say they will cancel their subscription if the streaming giant raises the price again than there are subscribers that are willing to pay a higher price.

“Among all current Netflix users and those likely to subscribe, 29% would subscribe to an ad-free plan, such as Netflix Standard or Premium plans,” the report says. “However, 39% say they would cancel their subscription if a price hike took effect.”

Here’s a breakdown of why streaming service prices are increasing, which platforms are raising prices and the cheapest way to watch TV in 2023.

What's streaming on Disney and Hulu? Price hikes. These tips can save you money.

Why are streaming service prices increasing?

According to a recent Fortune report, half of the most-used streaming platforms in America are charging double what their initial prices were when they debuted.

Competition has a lot to do with long-term price hikes. The streaming market has grown leaps and bounds since YouTube launched in 2005 and introduced us to video streaming.

Netflix, the first company to popularize video on-demand services in 2007, now exists in a market saturated with lucrative competitors like Hulu, Amazon Prime Video and Max.

The reason why customers are seeing so many price increases now is because streaming platforms owned by large media companies who followed Netflix’s lead – like Max and Disney+ – are now prioritizing profit over catching up with Netflix.

Most major streaming services in competition with Netflix were prioritizing building out their platforms at a fast pace to provide a user experience competitive with Netflix’s until recently.

Now that these other streaming platforms have the subscriber base that they need, the media companies that own them are ready to see some profit. According to the Wall Street Journal, Netflix is the only major streaming service that’s been making a consistent profit since 2020.

What streaming services are increasing their prices?

Here are the most recent streaming service price hikes:

  • Hulu: Over the summer, Disney raised the price for Hulu’s ad-free subscriptions by $3, from $14.99 to $17.99.

  • Max: In January, when Max was still HBO Max, the streaming platform raised its ad-free subscriptions from $14.99 to $15.99 and added an “ultimate” ad-free option for $20 each month.

  • Disney+: In October, the price for an ad-free Disney+ subscription increased from $10.99 to $13.99.

  • Prime Video: In September, Amazon announced that those who pay more to go ad-free on the Prime streaming platform will see a $2.99 increase in their monthly subscription charges.

  • Paramount+ with Showtime: Paramount announced that the price for its streaming service is increasing from $9.99 to $11.99 in September. Paramount’s CEO also announced that the streaming service will raise its price again in 2024 or 2025.

  • YouTube Premium: Over the summer, YouTube Premium subscribers saw a $2 price hike when the cost to go ad-free, use YouTube music and download videos to watch without wifi increased from $11.99 to $13.99.

  • Netflix: In October, Netflix announced a price hike that’s expected to go into effect for returning subscribers this month (anyone who signed up for Netflix after the October announcement already pays the updated price). The price of Netflix’s ad-free “basic” and “premium” subscriptions both rose by $2 each month, to $11.99 and $22.99 respectively. Netflix’s subscription tier that includes ads and its “standard” subscriptions are staying the same for now.

What is the cheapest way to watch TV?

In August, before October’s round of streaming service price hikes, The Financial Times reported that it’s cheaper to pay for a cable TV package (around $83 each month) than it is to keep paying for the top streaming services ($87 each month).

This article originally appeared on Treasure Coast Newspapers: Here's why streaming service prices are increasing and by how much

Advertisement