Summer Streaming Costs Continue To Surge

This summer, streaming bills are set to increase, joining the ranks of other rising expenses. Max is the latest streaming service to raise its prices, following a trend seen across the industry. Spotify also recently announced a price hike for its monthly subscriptions, adding to the growing list of streaming services becoming more expensive.

Just a day before Max’s announcement, Spotify revealed that its Premium monthly plans for Individual, Duo, and Family subscriptions would increase by $1, $2, and $3, respectively. These price hikes reflect a broader trend in the streaming industry, where services are continuously adjusting their pricing strategies to boost revenue per subscriber.

A recent analysis by Business Insider revealed that 10 of the top streaming services have raised their prices at least once over the past year. Max’s price increase took effect immediately for new subscribers and will impact current subscribers by their next billing date on or after July 4. The ad-free plans will see a jump from $15.99 to $16.99 per month, and from $149.99 to $169.99 annually. The Ultimate ad-free plan, which includes 4k UHD streaming, will rise from $19.99 to $20.99 monthly and from $199.99 to $209.99 per year. However, the ad-supported plan remains at $9.99 per month or $99.99 per year, providing some relief for budget-conscious viewers.

Additionally, Amazon Prime Video introduced ads earlier this year, with an option to avoid them by upgrading to a more expensive plan costing an extra $2.99 per month. Netflix’s ad-supported plan, launched in 2022, has remained at $6.99 and has contributed to the company’s growing subscriber base. These changes underscore the efforts of streaming companies to increase their revenue, which also includes cracking down on password-sharing. Netflix, for example, now limits viewership to household members and charges $7.99 per month for each additional user outside the household. Rivals like Disney+ and Max are expected to implement similar measures.

Some streaming services are also exploring bundled pricing, where the combined cost of multiple services begins to rival traditional cable TV. An analysis by the Financial Times last August showed that a top U.S. streaming service bundle could cost $87, surpassing the average $83 cable package.

Despite these price increases, streaming services with ad-supported plans still offer a cheaper alternative to cable. As the summer heats up, consumers may need to consider revisiting their streaming subscriptions to manage their budgets effectively.