After Recent Pricing Increases In The Streaming Industry, How Do The Major Companies Fare?
The cost of streaming service subscriptions is rising as businesses introduce more affordable, ad-supported options to replace their out-of-control content costs. Disney increased its prices last week, becoming the third major provider of entertainment to do so this year after Netflix in January and Amazon, which offers Prime Video as part of its wider e-commerce options, in February. The new Hulu fee will take effect next month, while the cost of Disney+’s main ad-free service will increase by 38% in December.
Streamers are investing heavily in increasingly complex titles such as “House of the Dragon,” “The Lord of the Rings: The Rings of Power,” and the most recent season of “Stranger Things” to keep users interested in their services even as prices rise.But would this drop in sales happen when people are already feeling the effects of price hikes?
According to Michael Nathanson of MoffettNathanson, large streamers have no choice but to raise their prices in an effort to meet Wall Street’s new emphasis on profitability. In an analytical piece on August 11, he stated, “From this point on, we expect the goal for streamers is the return on invested money and free cash flow generation.”
Pricing: The streamer increased prices in January to range from $9.99 to $19.99 a month. The launch of an ad-supported plan in 2023; price to be determined.
Recent hits/upcoming blockbusters: “Stranger Things 4”
Worth it if: customers who are concerned about the high-end rate hike have expressed their concerns. But no competitor can match Netflix’s breadth of viewing options.
Pricing: The monthly cost ranges from $9.99 with advertisements to $14.99 without. The premium rate is identical to HBO’s cable membership cost. The combined HBO Max-Discovery+ service will launch in the summer of 2023, with an undetermined price.
Recent successes and future blockbusters: “House of the Dragon” (HBO)
Worth it if: You enjoy HBO series or any of the content available at its niche hubs (TCM, DC or Cartoon Network).
Price: $7.99 per month without advertisements, increasing by 38% to $10.99 per month on December 8. At that point, a $7.99 ad-supported version will be made accessible.
New releases and upcoming tentpoles: She-Hulk: Attorney at Law by Marvel, and Andor by Lucasfilm
Worth it if: your children scream for traditional Disney material, or if you prefer Marvel or Lucasfilm television.
Pricing: The ad-plan price will increase by $1 to $7.99/month on October 10; the ad-free plan will increase by 15% to $14.99/month.
Recent successes/upcoming blockbusters: “Prey”
Worth it if: You regularly watch its original programming, which includes “The Handmaid’s Tale” and “Only Murders in the Building.” Beginning in September, NBC shows will be exclusively available on Peacock instead of Hulu.
AMAZON PRIME VIDEO
Price: Amazon Prime services, which provide streaming in addition to e-commerce discounts, just saw a $20 increase to $139/year.
Recent hits/upcoming tentpoles: “The Lord of the Rings: The Rings of Power,” “The Boys”
Worth it if: you enjoy two-day shipping or are a J.R.R. Tolkien devotee. Over Labor Day weekend, the streamer’s largest swing to date debuts.
Recent hits/upcoming blockbusters: “Ted Lasso,” “Pachinko”
Worth it if: This service, which is one of the cheaper options, has high-quality options but fewer of them.
Pricing: $4.99/month to $9.99/month
Recent hits/upcoming tentpoles: “1883,” “Halo”
Worth it if: You enjoy Taylor Sheridan’s world or “Star Trek” programming.
Pricing: Pricing ranges from $4.99 to $9.99 per month. The features of a free ad-supported edition are severely constrained.
Recent hits/upcoming Blockbusters: “Bel-Air,” “Love Island USA”
Worth it if: You cut the cord and want to see NBC episodes the day after they air when they exclusively switch from Hulu to Peacock this autumn —
Perhaps you keep up with Premier League soccer closely.