Cord-Cutting's Hidden Cost: The Reality of Streaming Price Hikes
When making the decision to cut the cord, there are many costs to consider. Streaming equipment, service price adjustments if a bundled discount is no longer applicable, and such. Often overlooked is the necessary investment in home network infrastructure, such as high-performance routers or mesh systems capable of handling multiple 4K streams, and the potential increase in home internet costs if you exceed data caps or require a higher speed tier to maintain a buffer-free experience.
An expense that isn't often considered is the regular price increases of streaming services. The current cost of services is often considered, but for most services, that price won't remain that price after a year or so. Looking back over the last decade and a half, prices for streaming video on demand services have risen around 80% overall -- ranging from 27% to 171% -- with most of the increases happening in the last 5 years.
SVOD Inflation Analysis (Launch to 2026)
This research identifies the "honest" price trajectory for each service by tracking the tier that matches its original launch format (e.g., ad-free to ad-free). For Netflix, the Standard tier is used as the baseline for a balanced comparison. Prices are rounded to the nearest whole dollar.
| Service | Launch Year | Launch Price | 2011 | 2016 | 2021 | 2026 Price | Total Increase |
|---|---|---|---|---|---|---|---|
| Hulu | 2010 | $8 | $8 | $6 | $7 | $12 | 50% |
| Netflix | 2010 | $8 | $8 | $10 | $14 | $18 | 125% |
| Paramount Plus | 2014 | $6 | -- | $6 | $5 | $9 | 50% |
| Prime Video | 2016 | $9 | -- | $9 | $9 | $12 | 33% |
| Apple TV Plus | 2019 | $5 | -- | -- | $5 | $13 | 160% |
| Disney Plus | 2019 | $7 | -- | -- | $8 | $19 | 171% |
| HBO Max | 2020 | $15 | -- | -- | $15 | $19 | 27% |
| Peacock | 2020 | $5 | -- | -- | $5 | $11 | 120% |
Research Observations
- The Disney Plus Outlier: The jump from $7 to $19 is the most extreme in the research. It is the only service to see a triple-digit percentage increase in under a decade, resulting in a 171% surge.
- The Stability of HBO Max: This service has the lowest percentage increase. Because it launched at a premium $15 price point in 2020, its move to $19 represents a 27% jump, which is below the rate of general inflation for that same period.
- The Legacy Baseline: Hulu and Paramount Plus have remained remarkably consistent over a decade and a half. Both share a 50% total increase, though they have frequently fluctuated their pricing to win back subscribers.
- The Apple Paradox: Apple TV Plus represents a high-velocity increase. While $13 still feels lower than Netflix or Disney Plus, it has climbed 160% from its original $5 entry point. This illustrates how a low starting price can mask an aggressive fiscal trajectory.
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