Why Are Streaming Services Getting More Expensive?

The 'Golden Age' is Over

Remember when Netflix was $8 a month? I do. I used to buy so many bananas with the money I saved! But those days are gone. We have entered the era of "Streamflation."

For years, streaming services kept prices artificially low to get you addicted. They didn't care about making money; they only cared about subscriber growth. It was a "land grab." But now that everyone has a subscription, the party is over, and the bill has arrived.

Reason 1: The Content Spending War

Making TV shows used to be expensive. Now? It's astronomically expensive. To compete with each other, streamers are spending billions on content.

• The Scale: Amazon spent nearly $1 billion on The Rings of Power. Netflix spends $30 million per episode on Stranger Things.
• The Problem: These costs don't go down. To keep you subscribed, they have to keep making bigger, louder, and more expensive shows. That money has to come from somewhere—your monthly fee.

Reason 2: Wall Street Demands Profits

For a long time, investors were happy if Disney+ or Peacock just added more users, even if they lost money. But in 2022, the mood on Wall Street changed.

Investors stopped asking "How many users do you have?" and started asking "Where is the profit?". To become profitable, streaming services had to pull three levers:

• Raise Prices: The fastest way to increase revenue.
• Cut Content: Removing shows to save on tax and residuals (like Westworld leaving Max).
• Crack Down on Sharing: Forcing password sharers to pay up.

Reason 3: The Churn Problem

Unlike Cable TV, where you were locked into a 2-year contract, you can cancel streaming anytime. This is called "Churn."

People sign up for one month to watch a specific show, then cancel. This erratic behavior scares the streaming companies. To combat the money they lose from people cancelling, they have to squeeze more money out of the loyal people who stay subscribed. It's a loyalty tax on long-term users.

Reason 4: The Ad-Supported Pivot

This is the big one. Why is the "Ad-Free" plan so expensive? To make the "With Ads" plan look cheap. Services have realized they can "double-dip"—they get your monthly subscription fee *and* they get money from advertisers.

This new model is often *more profitable* for them than an ad-free subscriber. They are deliberately creating a "pain point" (a high ad-free price) to push you toward the ad-supported tier. It's a key part of the shift to the Cable 2.0 model, where commercials are just part of the package.

Reason 5: The High Cost of Live Sports

What's the one thing you can't binge-watch on-demand? A live game. Live sports are the last pillar of traditional TV, and streaming companies are paying billions to get them. Peacock has the NFL, Max has NBA and MLB, and Paramount+ has the NFL and Champions League soccer.

These broadcast rights are incredibly expensive, and the cost is passed on to *all* subscribers, whether you watch sports or not. This is a primary driver for the price hikes on "all-in-one" services that are trying to replace your cable bundle completely.

Un's Final Verdict

Here is the hard truth: Streaming is just Cable 2.0 now.

The era of cheap, endless entertainment was a temporary bubble subsidized by investors. That bubble has popped. Prices will continue to rise, driven by content costs, ad-models, and expensive sports deals. Your best defense? Be a "service hopper." Subscribe, watch, cancel, and move to the next one. Don't pay for what you aren't watching!