Streaming prices have surged nearly 70% in four years, and they're still going up
Apple TV+ has had one of the largest increases. The service launched in 2019 at $4.99 a month and has since raised its price by 200%. It still has a smaller overall library than most of its main competitors, but Apple has continued to add original series and films while... Read Entire Article
Streaming service subscriptions have increased in price by nearly 70% over the past four years, with the trend showing no signs of slowing down. Today, the eight major services cost around $151 per month in total for ad-free plans purchased separately, compared to roughly $90 in 2020. Apple TV+ has experienced the most significant price hike, with its initial launch price of $4.99 a month increasing by 200%.
Despite a smaller overall library, Apple continues expanding the service with original series and films. Disney+ also raised its prices significantly, starting at $6.99 a month without ads and expanding to include an ad-supported plan at $11.99 and a premium ad-free version. Paramount+ has seen an 80% increase over five years, while Netflix's Premium plan price has risen by 125% since its 2013 introduction.
The recent surge in streaming costs has been particularly notable, with a 11.8% increase over the past year and an average of 17.7% per year in 2023. Apple TV+ raised its price by 50% in the last year, and Peacock's plans increased by a similar margin. HBO Max has stood out as an exception, with a 23% price increase over six years. The industry's pricing has even outpaced inflation, with consumer prices rising by an average of 3.84% annually since 2019, according to Bureau of Labor Statistics data.
Streaming services have been more aggressive in raising prices compared to traditional cable and satellite TV, which have seen more gradual price increases of around 3.9% per year. However, the shift to higher-priced streaming services has been driven by companies investing heavily in original programming, subscriber growth, and technological advancements.
While cable packages can still cost over $170 a month, streaming companies are under pressure to become more profitable by implementing higher subscription fees, advertising, bundles, and stricter account sharing rules. Despite these challenges, consumers still have more flexibility with streaming services, allowing them to cancel and rejoin at will, which can help reduce costs but also alters viewing habits.
As a result, viewers may need to wait until a season ends or a show moves to another platform before subscribing, making the days of paying for one service and finding everything in one place largely a thing of the past.
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