Finding new subscribers in a saturated streaming video market isn't easy. And with legacy media companies desperate to recoup revenue declines in their linear TV businesses, the cost of your monthly plan is likely to keep rising.

After years of inflation, Americans are used to sticker shock. But nothing compares to the surging price of streaming video.

Last week, Apple TV+ became the latest streaming service to raise its price—up from $6.99 to $9.99 per month—following the example of Disney+, Hulu, ESPN+, and Netflix, which all hiked their prices in October.

Half of the major streaming platforms in the U.S. now charge a monthly fee that’s double the price they charged when they initially came to market. And many of these streaming services haven’t even been around for 10 years.

  • jballs@sh.itjust.worksEnglish
    20·
    1 year ago

    Pushing ads pushes profits

    Some observers see another reason for the frequent price hikes: to push subscribers to their breaking point, and compel them to opt for a lower-priced, or even free, ad-supported plan instead.

    Disney CEO Bob Iger said as much during an August earnings call: “We’re obviously trying, with our pricing strategy, to migrate more subs to the advertiser-supported tier.”

    Why? Unlike a paid subscription, which brings in a fixed amount of revenue each month, there is no ceiling to advertising revenue. The number of ads displayed and the rates a streaming platform can charge marketers for the ads are constantly fluctuating, offering unlimited revenue upside.

    Son of a removed