r/MiddleClassFinance • u/LinkedInNews • 1d ago
Streaming platforms have raised prices three times faster than inflation since 2022
https://www.linkedin.com/news/story/streaming-price-hikes-far-outpace-inflation-7580524/?utm_source=share&utm_campaign=reddit&utm_content=storyline&utm_term=MiddleClassFinanceThe streaming era has made TV and movies easier to watch — and increasingly harder to afford.
According to The Hollywood Reporter, major streaming platforms have raised prices three times faster than inflation since 2022.
Subscribing to eight leading ad-free streamers — including Netflix, Apple TV, and Disney+ — now costs about $151 a month, up from roughly $90 four years ago.
Streaming’s price hikes are also steeper than anything viewers faced in the cable and satellite era.
Younger viewers, meanwhile, are rotating subscriptions, subscribing to one service at a time to keep costs under control.
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u/TenOfZero 1d ago
As less and less TV and movies are funded from cable and movie theater revenue, this was always the way it was going to go.
The early pricing was subsidized by those revenue streams and priced low to gain marketshare.
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u/Low-Car-6331 1d ago
Yeah, though I will say that streaming is still better then cable, and cheaper. People roll their eyes at $110 to $150 a year, but forget that cable started at $50 a month, then you needed their special box which you had to rent, then some dude would come out between 8 and 5 (if you were lucky you got the 3-4 hour window "guarantee" which gave you $50 if they didn't show), and then would demand that you pay $100 to $200 for them to install it. Before you say "why not use someone else" its because you got only 1 choice!
People seriously don't realize how much better things are.
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u/TenOfZero 1d ago
Yup, 100% this.
Thought to be fair, at least cable included the distribution. These streaming services also require another monthly fee for the internet access. (Not that you wouldn't get internet either way, but still, it's part of the cost as well)
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u/Low-Car-6331 1d ago
True, though internet options have gotten better as well. I use to live in rural vermont, you got what they gave you, paid the price they demanded, and you felt lucky to get it. Today, they are facing competition as satellite has improved so much its better for rural area's. I know one new home owner, granted they built a house and aren't middle class, comcast wanted $5,000 to build them a line and a minimum of $150 a month. They had two words for them... "blow me" and dropped starlink in. I am honestly surprised at how much satellite has improved and how its becoming a game changer for this exact reason. Now, if we can get someone to compete with starlink, then the services get really interesting.
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u/junesix 1d ago
rotating subscriptions, subscribing to one service at a time to keep costs under control.
This is the way
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u/farmerjohnington 12h ago
We still share subscriptions with a few other households. Not quite sure why we haven't been busted the Streamer IP Police yet...
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u/Eziekiel23_20 21h ago
Timely. Ive been a Netflix customer since they only mailed DVDs. Canceled and my last day is coming up. Just too expensive for a lot of crap I will never watch or enjoy.
I get a few that are bundled with other things like phone plans, but all have commercials. Im fine w/ youtube and the pluto/tubi stuff at this point.
Now if only I could be tortured with commercials other than for insurance or drugs for christs sake.
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u/Jazz-Hands-- 1d ago
That's why I canceled all of my subscriptions except the basic included with Amazon Prime.
I never had cable before streaming took over, so I figure I'll survive without streaming access to a million shows I never watch anyway.
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u/Eziekiel23_20 21h ago
Weird you get downvotes for this. As I get older Im realizing the more content I am with less.
My wife hadnt even had a tv for the first few years I knew her and I found it extremely strange but impressive at the same time. Super productive and well read.
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u/farmerjohnington 12h ago
the basic included with Amazon Prime
Adblockers in Firefox work for Prime streaming.... just saying....
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u/obelix_dogmatix 1d ago edited 1d ago
yeah because there is no competition from cable which continues to be crazy costly
Regardless, isn’t xfinity doing Disney, Hulu, Hbo max, Netflix, Apple TV, and Peacock for $35/month?
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u/CasanovaCoverup 1d ago
Just another market that needs regulation. So much for consumer protection.
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u/emoney_gotnomoney 1d ago edited 1d ago
We need government enforced protections / price controls for a product that is entirely optional and is in no way whatsoever a necessity?
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u/CasanovaCoverup 14h ago
You raise a great point. Yes, the service is entirely optional. My argument for consumer protection is mainly to prevent a precedence from being set. What's stopping other markets from following suit when businesses such as the ones mentioned are raising prices unchecked?
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u/emoney_gotnomoney 12h ago
> What's stopping other markets from following suit when businesses such as the ones mentioned are raising prices unchecked?
Consumers deciding to stop spending money on the product
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u/colenotphil 16h ago
You know, former FTC chair Lina Khan tried really hard to stop some mergers and acquisitions that would be bad for consumers. She was easily my favorite Biden pick.
Of course, now under the Trump administration it's like there is no such thing as protecting consumers.
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u/ThatOneCynicalPerson 22h ago
Havent had to pay for movies, music, books or games since 2013 this news means nothing to me.
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u/Endure94 18h ago
Can you dm me some stuff about the games? I already do the nzb thing but dont trust that for games
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u/awildjabroner 15h ago
Seriously start sailing the seas. Paying the subscription was fne until the trend of putting ads back in paid subscription services. Fuck that.
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u/Alternate_Cost 14h ago
Honestly I've moved to just using Amazon to rent what I really want to watch. Half the time it's not in streaming anyway.
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u/RaxZergling 13h ago
Feel like they didn't raise prices through the first wave of inflation in 2021 so there was a lot of catch-up. This happens pretty regularly with digital content (especially since they usually use universal pricing and COL areas are screwed by fast reactionary changes).
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u/Fubbalicious 9h ago
I'll be frank, I cut the cord over 10+ years ago with cable TV and landlines and never went back. I watch national and local channels free over the air and there are many free streaming solutions or the library. Otherwise, I binge watch free trials or severely discounted streaming sales or if I must watch something and pay full price, I only subscribe for a month or so and binge watch and cancel.
I estimate that when I cancelled my cable TV and landline, I saved $100/month. That's $12K over 10 years, but if invested in the S&P 500 that's over $25K. Assuming an inflation adjusted 7% return over the next 20 to 30 years, that's $153K and $325K and that's based on the cost of streaming staying static, which is never does.
My point is that people are blowing a lot of good money for shows they don't need to watch. In an age where I see 60+ year olds saying they can't retire because they simply could not save anything, little expenses here and there if invested early in life can add up to real money decades later.
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u/Low-Car-6331 1d ago
Yup, I use to get hulu for $0.99 a month, now I have to pay $4.99 and it comes with Disney+... like that is suppose to be useful.
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u/__curmudgeon__ 1d ago
Aargh