Disney+ and Hulu will raise the rates of their ad-free plans in October. The monthly subscription for the former will go from $11 to $14, while the latter will increase from $15 to $18. This indicates that Disney+ is now twice as expensive as it was when it first arrived in 2019. These enormous price rises are referred as “streamflation” by critics, and subscribers are not pleased.
According to Google Trends, “Cancel Disney Plus” and “Cancel Hulu” searches have been on the rise, indicating that an increasing number of people are considering cancelling their memberships.
Even so, “streamflation” is not limited to Disney+ and Hulu. In fact, price increases have also been announced by Peacock, Max, Paramount+, and Apple TV+. Based on one study, the average cost of using a major ad-free streaming service has increased by a quarter in the last year.
Following years of charging low prices in the pursuit of fast growth, most major players are facing tens of billions of dollars in losses. They are now seeking profitability by raising prices. These decisions, however, create an immediate margin challenge for businesses as customers churn and switch. Is another round of streaminflation the best move for streaming services right now?
Disney+ and Hulu will raise the rates of their ad-free plans in October. The monthly subscription for the former will go from $11 to $14, while the latter will increase from $15 to $18. This indicates that Disney+ is now twice as expensive as it was when it first arrived in 2019. These enormous price rises are referred as “streamflation” by critics, and subscribers are not pleased.
According to Google Trends, “Cancel Disney Plus” and “Cancel Hulu” searches have been on the rise, indicating that an increasing number of people are considering cancelling their memberships.
Even so, “streamflation” is not limited to Disney+ and Hulu. In fact, price increases have also been announced by Peacock, Max, Paramount+, and Apple TV+. Based on one study, the average cost of using a major ad-free streaming service has increased by a quarter in the last year.
Following years of charging low prices in the pursuit of fast growth, most major players are facing tens of billions of dollars in losses. They are now seeking profitability by raising prices. These decisions, however, create an immediate margin challenge for businesses as customers churn and switch. Is another round of streaminflation the best move for streaming services right now?
#pricingnews #taylorwellspricing #streamflation
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