When it was first introduced, streaming was supposed to be the cheap alternative to cable. But in 2025, it’s turning into cable again, just spread across seven apps and a password manager.
After recent price hikes from Disney+ and Netflix, according to Wallethub, the average U.S. household now spends about $70 a month on streaming services. WalletHub analyst Chip Lupo told the New York Post. “You’re probably paying just as much for all those combined as you were paying for cable”.
Lupo argued the increases land softly because they rarely hit as one big jump. “Most people tend not to notice these incremental increases, which is how it works,” he said. “At some point, you’ll be paying twice as much as you were originally. A lot of people directly pay their streaming services. So a lot of times, they don’t notice.”
Wedbush analyst Dan Ives described what’s driving the cycle as competitive pressure. “we are seeing an arms race take place in the streaming battle,” he said, adding that Netflix has been able to keep pushing prices because churn hasn’t spiked. “Netflix has continued to raise prices as the churn from increases has been negligible with consumers given Netflix is the hearts and lungs of consumer content on a daily basis,” Ives said. “Content is king, and Netflix is at the top of the mountain.”
Here are some of several major streaming services that have moved from their starting prices:
- Disney+ first launched in 2019 at $6.99 a month with no ads. It now costs $11.99 for its basic tier with ads and $18.99 for ad-free premium.
- Netflix started out with a $7.99 monthly streaming plan. These days it has a standard plan for $17.99 a month and premium at $24.49, alongside a $7.99 ad-supported tier.
- Apple TV+ launched in 2019 at $4.99 and now costs $12.99 a month.
One could aregue that as streaming services expand, quality original content becomes expensive to produce, and sports packages add pressure, which justifies the increased cost. But the NY Post story also points to the real risk to streaming services – that people eventually notice the total price they’re paying, and then start cutting subscriptions.
TransUnion’s SVP of Media and Entertainment, Julie Clark, put it this way in a statement to The Post: “Price hikes are rarely welcomed, but often tolerated when the content and experience continue to deliver value. While some viewers may not notice incremental increases right away, many are becoming more mindful of subscription costs and increasingly selective about which services make the cut.”
Source: NY Post