Streaming service prices rising faster than cable television

Streaming service subscription prices are rising at a rate significantly faster than traditional cable television. Data indicates that streaming costs have increased at approximately three times the rate of inflation.

Major platforms have seen substantial price hikes since their launches. Apple TV has tripled its monthly cost since 2019, and Disney+ has risen from $6.99 to $11.99 for its ad-supported tier. Other notable increases include Paramount+ increasing its cheapest tier by 80 percent over five years and Netflix Premium rising 125 percent since 2013. Collectively, subscribing to the eight major streaming services without ads or bundles now costs roughly $151 per month, compared to $90 four years ago.

In contrast, Bureau of Labor Statistics data shows that cable prices rose at an annual rate of 3.9 percent during the period of widespread cord-cutting. As costs rise, some younger viewers are adopting a strategy known as ‘streaming cycling,’ where they subscribe to a single service for a short period to watch specific content before canceling and switching to a different platform.