When San Jose author Katie Kerridan signed up for Disney+ six years ago, the cost was justified, giving her family commercial-free access to hundreds of movies like “The Lion King” and thousands of TV episodes, including the Star Wars series “The Mandalorian.”
But since then, the cost of an ad-free streaming plan has reached $18.99 per month. That was the last straw for Keridan, 42, whose husband canceled Disney+ last month.
“Every year we hit that level and kept going up. In this economy, every dollar counts, so we had to really sit down and really look at how much streaming service we were paying for,” Keridan said. “How can I benefit from my family’s enjoyment of streaming services? And how can I incorporate it into my budget to ensure all my bills are paid at the end of the month?”
Many people who subscribe to streaming services are having these conversations in an uncertain economic climate.
They used to be sold at discounted prices, but many platforms raised prices when consumers became dissatisfied. In order to increase profits, entertainment companies justify increasing the cost of their plans to help pay for the premium content they provide. But some viewers don’t buy it.
Consulting firm Deloitte says customers are paying $22 more for subscription video streaming services than they were a year ago. As of October, U.S. households were spending an average of $70 a month, compared to $48 a year ago, according to Deloitte.
About 70% of consumers surveyed last month said they were dissatisfied with price hikes for their entertainment services, and about a third said they had cut back on their subscriptions in the past three months due to financial concerns, Deloitte said.
“There’s frustration, not just in terms of apathy, but also in terms of people just being tired and thinking it’s not worth paying the monthly subscription fee,” said Rohith Nandagiri, managing director at Deloitte Consulting LLP.
Disney+ has raised the price of its streaming service almost every year since it launched in 2019 for $6.99 per month. The company increased the price of its ad-free plan by $1 in 2021, then $3 in 2022 and 2023, $2 in 2024, and most recently this year, a $3 increase to $18.99 per month.
Disney isn’t the only streamer. Other companies, such as HBO Max, have also increased the prices of many of their subscription plans.
Some analysts say that as many services add live sports, fees for streamers are increasing, and that rights can be costly. And because streaming services have long given consumers access to big-budget TV shows and original movies, they expect viewers to pay more, too.
But some consumers, like Keridan, have a different perspective. While some streaming platforms add new content, such as live sports, they choose not to update some of their big-budget programming, like “Live Sports.” Keridan, a Marvel and Star Wars fan, said she mostly watches movies like Captain America: The Winter Soldier and shows like The Mandalorian on Disney+. Now she’s back to watching some shows ad-free on Blu-Ray discs.
Keridan quit Disney+, but his family still subscribes to YouTube Premium and Paramount+. She said she uses YouTube Premium for her workout videos instead of paying for a gym membership. Her family enjoys watching Star Trek shows on Paramount+, including the third season of “,” Keridan said.
Other consumers are looking to save money with cheaper plans and services that include ads while maintaining their streaming subscriptions.
“Consumers today are more resistant to advertising than ever before because they can get content at lower subscription prices,” said Brent Majid, CEO and president of Majid, a Minneapolis-based media consulting firm. “We’ve seen that number increase as people’s budgets tighten.”
In addition to quitting Disney+, Keridan said she has already cut back on other household expenses. Her family has high expenses and to save cash, they cut back on their annual trips. Keridan said she usually takes two or three vacations a year, but this year she’s only going to Disneyland in Anaheim.
But even the happiest place on earth hasn’t escaped.
“Just as streaming prices have gone up, so have park prices,” Keridan said. “And it seems like the price of everything is going up these days. And they’re now in direct competition with each other. We can’t keep everything, so we have to make tough cuts.”
