Streaming companies are raising prices to boost profits, pushing consumers towards ad-supported tiers.

From CNBC: 2024-08-16 12:57:45

Streaming companies like Disney, Warner Bros. Discovery are finally seeing profits, but at the cost of increased subscription fees. Disney CEO Bob Iger noted that the company’s combined streaming services were profitable due to price hikes rather than new subscribers. Other companies like Paramount and Comcast have also raised prices to boost profits.

To attract more advertisers, many companies are pushing consumers towards ad-supported tiers, which are often cheaper than commercial-free streaming. Warner Bros. Discovery reported that its ad-supported streaming business reached profitability, and Paramount noted a growth in revenue from advertising driven by Paramount+ and Pluto TV.

In response to increasing subscription costs, streaming companies are turning to bundling services and cracking down on password sharing. Disney, Paramount, and Warner Bros. Discovery are all offering bundle deals to lower costs for consumers. Netflix has also changed its pricing strategy to increase value before raising prices, aiming to keep subscribers engaged.



Read more at CNBC: Streaming is getting more expensive for consumers. Here’s why