Streaming prices have surged nearly 70% in four years, and they’re still going up

Bottom line: Consumers are paying more each month to keep up with new shows, movies, and live programming as streaming services continue to raise subscription prices. The eight major services now cost about $151 a month combined for ad-free plans purchased separately, without bundles, compared with roughly $90 for a similar lineup four years ago.

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 treating the service as part of its broader subscription business.

Disney+ has also moved well beyond its original price. It launched in 2019 at $6.99 a month without advertising. Its ad-supported plan now costs $11.99 a month, while the ad-free version costs more. Paramount+’s least expensive tier has risen 80% in five years. Netflix’s Premium plan is up 125% from its 2013 price.

The pace of increases has recently picked up as well. Streaming prices across the market rose 11.8% over the past 12 months. In 2023, the average increase was 17.7%. Apple TV+ raised its price 50% in the past year, and Peacock’s plans rose by roughly the same amount.

HBO Max has been a notable exception. Its price has increased 23% over six years, less than most of its rivals. But HBO entered the streaming market at a higher price than newer services.

The industry’s pricing has risen faster than inflation. Consumer prices have increased by an average of 3.84% annually since 2019, according to Bureau of Labor Statistics data. Streaming services have raised prices far more aggressively, even as companies add lower-cost, ad-supported plans.

Cable and satellite television have also become more expensive over time, but their increases have been more gradual. A Hollywood Reporter analysis of Bureau of Labor Statistics data found that cable and satellite prices rose by an average of 3.9% a year, excluding the late 1980s, when deregulation led to a temporary surge. That does not mean cable is suddenly a bargain. Full packages from providers such as Spectrum and DirecTV can cost more than $170 a month.

Streaming companies are under pressure to make their businesses more profitable after spending heavily on original programming, subscriber growth, and technology. The low launch prices that helped services build audiences are giving way to a model built around higher subscription fees, advertising, bundles, and tighter rules on account sharing.

Consumers still have more flexibility than they did with traditional cable. They can cancel services at any time and return when a particular show or sports season begins. That has led more viewers to rotate subscriptions instead of keeping every service active year-round.

The approach can cut costs, but it also changes how people watch television. Viewers may have to wait until a season ends or a show moves to another platform before subscribing. The days of paying for one service and finding most of what you want to watch in one place are largely over.