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Hit by ‘streamflation’? Here’s why media companies are hiking prices (Published Quote)

Media companies across the board are jacking up the price of their streaming services in what some have dubbed “streamflation” as they look to turn a profit on streaming after years of losses.

By The Hill

Disney announced last week that it plans to increase prices for the ad-free versions of Disney+ and Hulu by at least 20 percent in October, following a “pretty significant” jump in prices just last year.

The Financial Times also reported that the total cost of maintaining the top streaming services will increase to $87 a month this fall, making it more expensive than the average $83 a month cable TV package.

“We’re witnessing a contemporary iteration of cable systems, now in digital format – and a normalization of pricing for streaming channels,” Dan Goman, the CEO of Ateliere Creative Technologies, said in a statement to The Hill.

“Unfortunately, for the consumer, this means that the free ride is over,” he added. “The days of a la carte, content-rich, low-cost streaming channels are coming to an end.”


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