Streaming prices climbing with no end in sight

Streaming prices in the U.S. up 24% in one year and still climbing

In the last year, streaming services such as Netflix and Disney have significantly increased their prices. However, according to Bernstein Research, these price hikes don't stop there.

The combined costs of subscriptions to Disney Plus, Hulu, Netflix, Max, Peacock, Paramount+ and Apple TV+ have gone from $76.43 to $94.43 per month in the last year, a 24% increase, outpacing the 3% increase in U.S. consumer prices.

Where are streaming rates heading?

The streaming services landscape is undergoing a significant economic transformation. Steadily rising prices on platforms such as Netflix and Disney Plus have generated fervent debate among consumers and the industry.

In fact, the progressive increase in the prices of the various streaming services has represented a real challenge for consumers. For example, the 24% increase in the combined costs of subscriptions to various streaming platforms over the past year has far outpaced the general rate of inflation in the United States.

This trend raises questions about the long-term sustainability of consumers' entertainment budgets. Price hikes, while justified by investment in original content and user experience improvements, could eventually affect subscriber retention.

Mark Schilsky's analysis

Mark Schilsky, an expert at Bernstein Research, emerges as an authoritative voice in this analysis. His observations based on comments from industry executives and relevant data point in a clear direction: more price increases are on the horizon for platforms such as Netflix, Hulu and Peacock.

However, Schilsky also identifies untapped potential in Netflix, Hulu and Peacock to set higher rates, which could underpin future growth for these services.

The role of quality content and relevant hits

The analysis not only focuses on the numbers, but also considers success factors that could influence pricing. The impact of cultural phenomena such as "Game of Thrones" and the constant demand for high-quality content could support the platforms' decisions to raise their tariffs.

This aspect highlights the need for continued investment in creating content that resonates with viewers.

Emerging alternatives: On-demand streaming advertising

Subscriber resistance to price increases raises a fundamental question: what is the alternative? The analysis mentions the possibility of on-demand streaming advertising emerging as a viable strategy.

As platforms seek to maintain a balance between satisfying viewers and securing revenue, the introduction of ads in on-demand content could mitigate pricing pressure.

Mexican situation is similar

In the Mexican context, the analysis reveals a variety of costs among the most prominent streaming services. Among them, Netflix stands out as the most expensive option.

According to the analysis, the prices of streaming platforms in Mexico vary, ranging from 79 pesos to up to 300 pesos per month, depending on the service and its specific characteristics. This cost disparity has the potential to significantly influence Mexican consumers' preferences when choosing a streaming platform.

Price differentiation not only reflects the content and quality of the service, but also how platforms adjust their fees to meet the preferences and purchasing power of specific markets.