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
Original article published at: https://thehill.com/business/4158728-hit-by-streamflation-heres-why-media-companies-are-hiking-prices/
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.”