The cost of streaming TV shows and movies, once considered a much cheaper alternative than owning a cable box, is rising.
Streaming services such as Amazon Prime, Disney +, HBO Max, Hulu and Netflix is increasing its monthly subscriptions now that they have a market base and can rely on more consumers to cut the proverbial cord.
Amazon is uploading it cost of the annual Prime subscription, which includes access to its original streaming content, by $ 20 to $ 139 a year, while Netflix raised its monthly interest rate to $ 2. A premium Netflix subscription now costs $ 19.99 per month, allowing customers to watch TV shows and movies on up to four devices at a time.
Given the variety of content available for streaming, consumers are subscribing to multiple platforms to keep up with their favorite shows, often paying more than one monthly streaming bill.
“I realized that once you have some of these, it’s almost like a car payment,” a streaming subscriber told CBS News correspondent Lilia Luciano.
“Any streaming platform you can imagine, I’m a subscriber right now,” said another streaming fan.
Companies like Netflix hope that the gradual price increases are worth it for consumers who want to enjoy the new seasons of their favorite shows.
“Environment dog eats dog”
Indeed, streaming platforms have invested billions of dollars in creating content that has won them Oscars and other industry awards. In 2021, for example, Netflix spent about $ 17 billion creating and producing original content. This increase in spending, combined with inflation, has increased costs for consumers.
“Services are really looking at content as their weapon to ensure that people subscribe – and remain subscribers – to this dog-eating environment,” said entertainment analyst Paul Erickson. He expects flow providers to continue to raise their prices as long as consumers are willing to absorb costs.
Price increases will end when consumers “start leaving the service or stop registering,” Erickson said. “But I think this is impossible, especially if you increase prices gradually over time.”
Although streaming costs are rising, Erickson believes the exciting content will keep viewers on board.
“It is difficult for people to move away from what they are transmitting now,” he said. “What they get is more valuable than what they got on traditional television. With a bundle of cables, you had a lot of things you were not interested in watching and channels you were browsing.”
Still room for price increases
Analysts also believe that flow rates can rise without causing too much “reversal” – the industry term for customers who sign up and then cancel a subscription.
Amazon could charge significantly more for Prime subscription, which includes streaming video, without alienating customers, given how dependent subscribers are on the shopping club for free e-commerce shipments and other benefits, another CBS analyst said MoneyWatch.
“We believe that Amazon could raise prices by another 30-40% and you would still have a negligible reversal, because many depend on Amazon Prime as part of their retail package, and the flow is part of it,” he said. Dan Ives, a technology analyst at Wedbush Securities.
Experts also believe that streaming services will begin to expand their offerings with more live sports coverage. It will not be all in one place, of course, and consumers who want it all will have to sign up for multiple streaming services.
“You’ve chosen a lot of this content and these services – and what you get for that money is more relevant to you,” Erickson said. “And this is the important part.”
How To Save Money On Flow Accounts
More flow subscriptions per household also leads to higher monthly bills.
“Before the pandemic, the average household had one to two subscriptions,” Ives said. “It’s four to five now. Flow consumption is off the rails, given what we’ve seen with many working from home and streamers increasing their services.”
Ives expects some households to reduce their subscriptions to just a few as COVID-19 cases decrease and most of the pandemic-era restrictions, such as mask use and social distance, will be lifted.
“As work from home becomes more of a memory, we will begin to see a cut in some services,” he said.
Another tip: Examine your credit card account to identify any subscriptions you may have forgotten when you signed up.
“Most consumers are looking at their credit cards and not realizing that in recent years they have signed up for five, six, seven subscriptions,” Ives said. “And the tire starts to hit the road if the contents are not there.”
Add Comment