According to a report in The Hollywood Reporter, streaming prices are rising three times as fast as inflation, making the cable company beatdowns over price less painful.
Increasing pressure from shareholders on streaming services to become profitable is likely the reason for the price increases, as the substantial subscriber numbers can no longer sustain the rising content costs. Here is a look at the top streamers and their price percentage increases.
- Apple TV’s price has tripled; the streamer launched in 2019 at $4.99 – a 200% increase.
- Disney+ debuted in 2019 at $6.99 with no ads and has since jumped to $11.99 with ads, a 71% hike.
- Paramount+ ranges from $8.99 to $13.99 per month. Their cheapest tier is up 80% in five years.
- Netflix Premium started at $11.99 in 2013, up 125% today to $26.99.
While these prices are generally lower than traditional cable, they do not include local network programming, and to access the best pricing, you’ll have to watch commercials. If you were to combine these four ad-free streaming services with a streaming cable service that offers network programming, your total could easily exceed $150 per month.
At the End of the Day
Content rules, and is out of control, but people are still going to watch. By pricing your video correctly for profit and promoting a bring-your-own-device strategy to eliminate install and support expenses, you can have a bundled service that will be a barrier for any current or future competitors who may offer a full suite of services.
