Consumers are spending $22 more a month on average for streaming services. Why do prices keep rising?

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Six years ago, Katie Keridan of San Jose signed up for Disney+ and paid only $6.99 a month. For that price, her family could watch a huge library of content – hundreds of movies like “The Lion King” and thousands of TV episodes, including the Star Wars show “The Mandalorian” – all without any ads.

Since then, the cost of a Disney+ subscription without ads has jumped to $18.99 per month. This price increase was the final reason Keridan’s husband decided to cancel their subscription last month.

Keridan explained that streaming service costs were increasing yearly, and with the current economic climate, every dollar counts. They decided to carefully evaluate their subscriptions, asking themselves if the entertainment they were getting justified the expense and how it fit into their overall monthly budget to ensure all bills were covered.

More and more people who use streaming services are starting to wonder about this, especially with the economy being unpredictable.

Streaming services used to be affordable, but many have quickly increased their prices, which is upsetting customers. These companies claim they need to raise prices to cover the cost of high-quality shows and movies and satisfy investors. However, many viewers don’t find this explanation convincing.

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Streaming services like Netflix and HBO Max are raising their prices as they try to increase profits. To save money, many viewers are now considering options like combining subscriptions or choosing plans with advertisements.

A new report from Deloitte shows the average U.S. household is now spending $70 a month on video streaming services – that’s $22 more than they were paying a year ago. Last October, the average monthly cost was $48.

A recent Deloitte survey found that around 70% of consumers are annoyed by price increases for their streaming and entertainment services. Roughly a third have canceled subscriptions in the past three months because of money worries.

According to Rohith Nandagiri, a managing director at Deloitte Consulting, many people are hesitant to subscribe because they’re either uninterested or feel it’s not worth the ongoing monthly fee, often due to simply being overwhelmed with options.

Since its launch in 2019 at $6.99 per month, Disney+ has steadily increased the price of its streaming service almost every year. Prices for ad-free plans went up by $1 in 2021, then by $3 in both 2022 and 2023. Another increase of $2 happened in 2024, and most recently, the price rose again by $3, bringing the current monthly cost to $18.99.

Disney isn’t alone in increasing its prices. Several other streaming services, like Netflix, HBO Max, and Apple TV, have also made their subscriptions more expensive this year.

Analysts suggest streaming services are increasing prices for a couple of key reasons. First, they’re adding live sports, which requires expensive broadcasting rights. Second, the cost of making high-quality TV shows and movies is going up, and streaming companies are passing those costs on to viewers.

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Apple and Formula 1 have teamed up for five years to offer Formula 1 content on Apple TV in the United States. This partnership builds on the popularity of last year’s Brad Pitt film, “F1 The Movie.”

However, some viewers, like Keridan, feel differently. While streaming services are adding things like live sports, they’re also canceling popular, expensive shows such as “Star Wars: The Acolyte.” Keridan, a fan of Marvel and Star Wars, used to subscribe to Disney+ specifically for movies like “Captain America: The Winter Soldier” and series like “The Mandalorian.” Now, she’s choosing to watch some of her favorites on Blu-Ray discs without commercials.

Keridan canceled her Disney+ subscription, but her family still pays for YouTube Premium and Paramount+. She personally uses YouTube Premium for fitness videos instead of going to a gym. The whole family likes watching shows like the latest season of “Star Trek: Strange New Worlds” on Paramount+.

You know, I’m seeing a lot of people like me holding onto their streaming services, but we’re getting smarter about it. We’re either switching to the ad-supported tiers to save a few bucks, or we’re bundling different services together to get a better deal. It’s all about finding ways to keep watching what we love without breaking the bank.

People are now more accepting of ads than in the past, and they’re often willing to tolerate them in exchange for cheaper subscription prices, according to Brent Magid, CEO of the media consulting firm Magid. He notes this trend has become more pronounced as people face increasing financial pressures.

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Losing customers to streaming services has pushed cable and satellite companies to actively try and win back those who’ve cancelled their subscriptions.

I’ve been hearing from people like Keridan who are really feeling the pinch of rising costs. She told me she’s already making cuts wherever she can, including canceling Disney+. Like a lot of families, her grocery bill has gone up, so they’ve had to make some tough choices. We usually take two or three vacations a year, but this year we’re only planning one trip – to Disneyland in Anaheim. It’s just about making things work with the budget right now.

But even the Happiest Place on Earth hasn’t escaped price hikes.

Keridan pointed out that, like streaming and park costs, everything seems to be getting more expensive. Because of this, families are having to make difficult choices about what they can afford and are cutting back on activities.

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2025-11-21 21:31