All articles tagged with #subscription costs
YouTube TV is raising its monthly subscription price by $10 to $82.99 starting January, citing rising content costs. This follows a trend among streaming services like Disney+ and Apple TV+ that have also increased prices or adjusted service tiers. YouTube TV, which launched at $35 in 2017, last raised its price in March 2023. Subscribers can cancel anytime if they choose not to accept the new pricing.
The average American now spends close to $1,000 annually on subscription streaming services, with more than half of subscribers cancelling at least one service due to recent steep price increases. Several major streaming platforms, including Apple TV+, Disney+, Hulu, HBO Max, and Netflix, have implemented significant price hikes in the past year. As a result, the average US subscriber pays $77 per month, and 25% pay $100 per month. Additionally, changes in ad-supported tiers, removal of ad-funded options, and crackdowns on password sharing have influenced consumer behavior in the streaming market.
A new report reveals that the average American subscriber pays $924 yearly for streaming subscriptions, with 25% paying $100 per month and 5% paying $200 monthly. As subscription costs rise and services crack down on password sharing, talks of subscription fatigue grow, especially as the average subscriber has 4.5 subscriptions. Many are seeking a single content hub for subscriptions and the ability to pay for multiple subscriptions via one bill to save money.
The subscription economy has grown significantly over the past decade, with consumers subscribing to various services and often forgetting about them. Research shows that the average consumer spends $219 on subscriptions every month, $133 more than they realize. Businesses take advantage of this forgetfulness, boosting revenues by making it difficult to cancel subscriptions. The Federal Trade Commission (FTC) has proposed a "click to cancel" rule that would make it as easy to cancel a subscription as it is to start one. However, trade groups argue that multi-step cancellation processes protect consumers and offer better deals. Some consumer advocacy groups believe the FTC's proposed rule doesn't go far enough and are urging for stronger regulations to protect consumers from unwanted charges.
Streaming services such as Netflix, Hulu, Disney Plus, and others have been steadily increasing their prices, with Netflix's most expensive plan now crossing the $20 threshold. These price hikes are driven by factors such as slower subscriber growth, rising costs of content creation and licensing, and the need to cash in on existing subscribers. While Netflix has set the bar for premium-tier pricing, other services are expected to follow suit. To offset rising prices, streamers are exploring ad-supported plans, which have proven to be lucrative. The gap between premium and ad-supported plans is widening, with the majority of subscribers opting for the cheaper option.