Streaming Prices Up 54% Since 2021 vs. 16% Inflation — SkimNews

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- Ad-free streaming services raised prices 54% from 2021 to 2025, well above the 16% cumulative U.S. inflation rate, per Forrester and Bureau of Labor Statistics data.
- Apple TV and Peacock raised rates in August 2025 — the fourth price hike for each in four years — while Netflix and Paramount+ also raised U.S. plans earlier in the year and Disney's ESPN Unlimited is set to rise 7% on Sept. 17.
- Netflix's ad-supported plan rose from $6.99/month to $7.99 in 2025 and will hit $8.99 in 2026 — which co-CEO Greg Peters called "an incredible value" on the July Q2 earnings call; Apple TV remains the only major streamer without an ad tier.
- U.S. households spend an average of $69/month on streaming services, per Deloitte's 2026 digital media trends report, and 41% of Americans surveyed said the content on their paid services isn't worth the price.
- Gen Z consumers spend 1.5 hours per day on user-generated content on platforms like YouTube, and Netflix has begun signing deals with YouTube creators Mark Rober, Drew Binsky and Kevin Langue to adjust its content mix.
- Forrester's Mike Proulx said consumers are "fed up" with hikes, noting every increase triggers a cost-benefit analysis: "Is this still worth it?"
Why it matters: With the average U.S. household now spending $69 a month on streaming and 41% of Americans saying the content isn't worth the price, the sector's pricing power is hitting a ceiling. Netflix's deep content bench and ad tier insulate it best, but Apple TV — the only major streamer without ads — has no low-cost retention lever as cancellation risk rises.
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