The state of the best streaming services has me thinking of Jay-Z. Yes, Beyoncé's better half, who once rapped "First the Fat Boys break up, now every day I wake up, Somebody got a problem with Hov."
Because now, it feels like I can't sign into work in the morning, covering the wide and wild world of streaming at Tom's Guide, without expecting news that some live TV or on-demand streaming service is going to be taking an extra buck out of my wallet every month. And it all comes at the wrong time.
First of all, the state of the economy is not exactly great. Wage growth, the job market and American economic confidence are all in unfit condition, according to a Wall Street Journal report that also highlights the increasing difficulties of retiring.
Second of all, these price increases happening around the same time creates an uneasy tsunami of dread about the entire streaming world. I can't tell you how many times someone has told me "why not go back to cable?" Well, to put it bluntly: because we can't.
Some streaming services may subsume others, as Showtime is becoming an upgrade perk for Paramount Plus subscribers. You're not going to go without the likes of Disney Plus, Netflix, HBO Max and Hulu, are you?
But to back out a second, let's talk about the best cable TV alternatives pulling a ... cable TV.
| Service | February 2023 monthly price | February 2022 monthly price |
|---|---|---|
| Sling TV (Orange or Blue) | $40 (or $45 depending on your market) | $35 |
| Hulu + Live TV (legacy plan with ad-free Disney Plus) | $75 | $70 |
| Fubo TV | $75 (before Regional Sports Fees) | $70 |
| YouTube TV | $65 | $65 |
| DirecTV Stream | $75 | $70 |
One of the worst examples above can be seen by Fubo TV going up by $5 per month before it started to charge Regional Sports Fees (that you can't opt out of) of up to $14, depending on your region. These fees show up at checkout, and aren't detailed on Fubo's front page. And for Super Bowl weekend this year, Fubo took away the ability to sign up for a monthly-billing plan. It since restored the option, but it defaults you to a quarterly plan.
In the last year, nearly every service we recommend (and one we don't) with major broadcast channels has raised prices by at least $5. The most recent, Sling TV price hike, came with no new features to compensate. Then, Sling announced it's adding ABC affiliates to select markets in Sling Blue, and is charging some of those subscribers $5 more per month. It's pushing Sling Orange & Blue to $60 per month, a price that doesn't make sense when YouTube TV is still $65.
Yes, Alphabet-owned YouTube TV has kept its price from a year ago, and that feels like they're possibly able to stave off that price increase because Google has more money than anyone.
Parent companies with huge pockets is no excuse that Apple TV Plus is allowed to make, as even Apple raised prices in 2022 by $2 per month (the service's first hike in 3 years). And Apple has more money than Scrooge McDuck. The last year also saw all of the Disney-owned streaming services get a price increase, too.
Streaming services opt for death by $1-$3 cuts
| Service | February 2023 monthly price | February 2022 monthly price |
|---|---|---|
| Netflix Standard (1080p) | $15.50 | $14 |
| Netflix Premium (4K) | $20 | $18 |
| Disney Plus (no ads) | $11 | $8 |
| Hulu (with ads) | $8 | $7 |
| ESPN Plus | $10 | $7 |
| Apple TV Plus | $7 | $5 |
| Apple Music | $11 | $10 |
| HBO Max (No ads) | $16 | $15 |
And then there's Paramount Plus, set to go up by $1 to $2, depending on your tier, as soon as it can suck in Showtime to its new Paramount Plus with Showtime package. The higher-end $2 price increase is arguably easier to accept, since it's adding Showtime.
Also, HBO Max raised prices by $1 (and will likely become more expensive when it's forced into a new super-service with the HBO Max and Discovery Plus merger). HBO subscribers will be forced into the new service eventually, while Discovery Plus may stick around for reasons that are still unexplained.
Outlook: Cancelations will continue as Streamer's Roulette emerges
If you don't know about 'churn,' you're probably doing it anyways. Churn is the colloquial name for the habit of customers canceling their memberships while planning to come back later.
You may have canceled Disney Plus while you waited for The Mandalorian season 3 and Loki season 2. You may have dropped HBO Max until Succession season 4.
The execs behind these price increases may think they have cover-fire from Netflix getting as pricey as $20 per month, but this wave of rising prices will only serve to make each of these increases more obvious. One increase here and there may have been easy to "miss" for some customers not paying attention, but a stream of price increases should make consumers all the more conscious of the pattern.
