The Reason Streaming Has Gotten More Expensive And Will Continue To Do So

Streaming of tv shows and movies has gotten progressively more expensive media companies are trying to offset the decline in cable subscriptions and the demand for more and better shows has given actors, producers et al the ability to raise their own prices. 

This cost spiral is not expected to abate soon. JL 

David Pierce reports in The Verge:

As the streaming business has gotten more competitive and companies have thrown billions into building platforms to compete with Netflix, participating in streaming has gotten more expensive. Netflix has raised its subscription multiple times. Disney Plus, Hulu, ESPN Plus, Paramount Plus, Peacock, Shudder, Starz - any service you can name - charges more. Many add ads to their platforms and they’re still charging more. The reason: as more customers cancel cable, more quickly than expected, distributors are looking to make up lost revenue. Good shows and movies are more in demand - and thus more expensive. And after a decade of spending money because all investors cared about were subscriber numbers, Hollywood  has found it needs to make money to stay in business.

Death. Taxes. All your streaming services getting a little more expensive all the time. These are the new certainties in life, it seems.

In recent years, as the streaming TV and movie business has gotten more competitive and companies around Hollywood have thrown billions into building their own platforms and libraries in order to compete with Netflix, participating in the streaming era has gotten steadily more expensive. Netflix has raised the cost of its subscription multiple times since its launch. Disney Plus, Hulu, and ESPN Plus have all gotten more expensive as Disney has invested more in streaming. Paramount Plus, Peacock, Shudder, Starz — practically any service you can name — charges more per month than it did a few years ago. Even as many of these services add ads to their platforms, they’re still charging more.

What’s behind all this wallet-raiding? A confluence of things. As more customers cancel cable, more quickly than anyone expected, the studios and distributors are looking for a way to make up the lost revenue. Good shows and movies are more in demand — and thus more expensive — than ever. And after a decade of spending money like it was going out of style because all investors cared about were subscriber numbers, Hollywood players of all sizes have found themselves needing to actually make money to stay in business.

Companies are looking for any way they can to improve their bottom line. They’re cracking down on password sharing, canceling shows for the tax breaks, and even selling their prized content to other platforms. But the most common strategy is simply to charge you, the viewer, more. A dollar here, two dollars there. Add it all up, and the golden era of TV suddenly has a pretty startling ticket price.