Why You Should Check the True Cost of Your Streaming Services Now

When users began moving away from cable TV in favor of streaming services in the early 2000s, it marked the dawn of a digital revolution.

Increased internet access combined with a growing disdain for advertisements and irrelevant media spurred a notable shift in how consumers engaged with media. With a plethora of options, lower prices, and no ads, the transition to streaming made perfect financial sense for many.

Fast forward to today, and if you subscribe to multiple streaming platforms, your monthly or annual costs could rival—or even exceed—those of a traditional cable TV package. In fact, the average American now spends up to $1,000 annually on subscriptions.

Most major streaming services have substantially increased their prices since they launched, driven by a phenomenon known as “streamflation.” This is essentially inflation affecting the streaming industry, causing prices to rise by as much as 25% annually according to some analysts.

An illustrative example is Netflix, which started as a DVD rental service in 1997. Although it struggled initially, by 2007, Netflix was offering unlimited streaming plans for just $8.99 a month. Another example is HBO, rebranded as Max, which offered streaming beginning in 2015 for $14.99 a month, providing access to exclusive shows and media.

Meanwhile, Disney+ initially launched its ad-free service at $6.99 a month, and Amazon bundled Prime Video at no extra cost with its Prime membership.

Today, streaming service prices continue to soar, with no indication of slowing down anytime soon. Additionally, streaming platforms are cracking down on password sharing, requiring consumers to pay extra if multiple users access an account.

Netflix’s current pricing is as follows:

• Standard subscription with ads: $6.99/month
• Standard, ad-free subscription: $15.49/month
• Premium subscription: $22.99/month

Both standard ad-free and premium plans come with the option to add extra member slots for $7.99 a month.

Max offers both individual and bundled subscription plans:

• Standard subscription with ads: $9.99/month or $99.99/year
• Standard, ad-free subscription: $16.99/month or $169.99/year
• Ultimate ad-free subscription: $20.00/month or $209.99/year
• Disney+, Hulu, Max Bundle with ads: $16.99/month
• Disney+, Hulu, Max Bundle without ads: $29.99/month

Disney+ offers standalone subscriptions and bundles with Max:

• Basic Disney+ subscription with ads: $7.99/month
• Premium Disney+ ad-free subscription: $13.99/month or $139.99/year
• Bundle Duo Basic with ads (Hulu + Disney+): $9.99/month
• Bundle Duo Premium without ads (Hulu + Disney+): $19.99/month
• Bundle Trio Basic with ads (Hulu + ESPN + Disney+): $14.99/month
• Bundle Trio Premium no ads (Hulu + ESPN + Disney+): $24.99/month

Amazon, while not strictly a streaming service, includes Prime Video as part of its Prime membership or as a standalone service:

• Amazon Prime Membership: $14.99/month or $139.00/year
• Prime Video Membership with ads: $8.99/month
• Prime Video Membership without ads: $2.99/month extra

Warren Buffet famously said, “Price is what you pay, value is what you get.” If you are satisfied with the offerings of your subscription, that’s one thing. However, if you rarely use the services or can’t justify the rising costs, reassessing your subscriptions can help you save money over time.

One useful tool to manage what you’re spending on subscriptions is a subscription tracker. These apps help you see all your subscriptions in one place, allowing you to evaluate which ones are helping or hindering your finances. From there, you can decide which subscriptions to keep or cancel.

The rising costs of subscription services likely won’t decrease anytime soon. With growing operational costs and the current state of the economy, companies are continuously adjusting prices. If your current spending on subscriptions exceeds what you originally intended, managing them effectively and staying informed about price hikes can go a long way in keeping your finances in order.

Knowing how much you spend and what you can live without helps you maintain financial control and avoid unnecessary expenses.

Source: GOBankingRates