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Media Companies Increasing Prices Due to ‘Streamflation’: An Explanation (Published Quote)

Media companies are increasing the prices of their streaming services, a trend known as “streamflation,” as they aim to turn a profit after years of losses. Last week, Disney announced plans to raise prices for the ad-free versions of Disney+ and Hulu by at least 20% in October, following a significant increase just last year.


Netflix and Paramount Plus have also eliminated their cheapest ad-free options, leaving customers with higher-priced plans. Warner Bros. Discovery’s Max and NBCUniversal’s Peacock have also raised their monthly rates. According to a Wall Street Journal analysis, the average monthly cost of a major streaming service has increased by nearly 25% in a year.


By Vigour Times

The price increases come as media companies seek to generate profits from their streaming services, which have incurred significant losses in recent years due to prioritizing rapid growth. These companies have reportedly lost a combined $20 billion on their streaming platforms since early 2020, with only Netflix consistently turning a profit.


Dan Goman, CEO of Ateliere Creative Technologies, stated that streaming services are costly to operate and produce content. However, companies are confident that subscribers will accept the price hikes or switch to ad-supported versions that are more affordable.



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