Abstract:
As major streaming media platforms continue to increase subscription fees, the cost for consumers to watch film and television programs and sports events is rising. The latest statistics show that in the past four years, the prices of mainstream streaming services have increased by nearly 70%, an increase that far exceeds the level of inflation during the same period. Although the industry initially promoted "cheaper and more flexible" alternatives to traditional cable TV as a selling point, the costs borne by users are now getting closer to the levels of the cable TV era.
Data shows that if the eight major streaming media platforms in the United States currently subscribe to the ad-free packages individually, the total monthly cost has reached approximately US$151. By comparison, the monthly payout for a roughly similar mix of content four years ago was only about $90. This means that overall viewing costs for consumers have increased significantly in just a few years.
Among the many platforms, Apple TV+’s price increase has been the most alarming. When the service was launched in 2019, the monthly fee was only $4.99. Since then, the price has increased by about 200%. Although the size of its content library is still smaller than that of most major competitors, Apple continues to invest in original film and television content as an important part of the overall subscription ecosystem.
Disney+ has also experienced significant price increases. When the platform launched in 2019, the ad-free version cost just $6.99 per month. Today, its ad-based plan costs $11.99, while the ad-free version costs even more.
Paramount+’s basic plan has increased by about 80% in the past five years. The price of Netflix’s Premium package has increased by approximately 125% compared to when it was launched in 2013.
The study found that the price increase trend has accelerated significantly in the past two years. In the past 12 months, the average price of the entire streaming media market has increased by 11.8%. In 2023, the average increase will reach 17.7%. Among them, Apple TV+ has raised its price by 50% again in the past year, and the price increases of many Peacock packages are also close to this level.
Compared to competitors, HBO Max is one of the few platforms with relatively modest price increases. Its prices have risen by about 23% over the past six years, lower than most peers. However, analysts pointed out that when HBO first entered the streaming media market, its pricing was significantly higher than that of many latecomers, so its subsequent price increase pressure is relatively small.
It is worth noting that the price of streaming media is rising much faster than the overall price level. According to the U.S. Bureau of Labor Statistics, the average annual growth rate of the U.S. Consumer Price Index since 2019 is approximately 3.84%. In contrast, the subscription fees of various streaming media platforms have grown significantly faster. Even though lower-priced subscription plans with advertisements have been continuously introduced in recent years, they have not been able to change the overall price trend.
The development trajectory of the industry is showing similar characteristics to the traditional TV market. Historical data shows that cable and satellite TV prices have also been rising in the long term, but the price increase process is relatively slow. "The Hollywood Reporter" analyzed data from the U.S. Bureau of Labor Statistics and found that after excluding the special period caused by deregulation in the late 1980s, U.S. cable and satellite TV service prices have increased by an average of about 3.9% per year.
However, this does not mean that traditional TVs regain their price advantage. Currently, the price of complete TV packages provided by operators such as Spectrum and DirecTV in the United States usually exceeds US$170 per month, which is still higher than the overall cost of mainstream streaming media packages.
The streaming industry is entering a new phase for consumers. In the past, "cord-cutters" chose to cancel cable TV and switch to online streaming mainly because of lower prices and greater freedom of choice. However, as the number of platforms continues to increase, content rights continue to fragment, and companies continue to increase subscription fees, promote advertising packages and bundling strategies under profit pressure, the cost gap between streaming media and traditional cable TV is rapidly narrowing.
Industry insiders believe that in the future streaming media platforms may further rely on advertising business, package bundling and tiered pricing models to increase revenue, while consumers will face more complex subscription choices. After years of rapid expansion, the streaming media industry is gradually shifting from pursuing user growth to pursuing profitability. This shift is also directly reflected in rising subscription bills.
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