When users shunned cable TV and started streaming in the early 2000s, the world was on the verge of a digital revolution.
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Increased access to the internet, coupled with a lower tolerance for advertising and irrelevant media, played a significant role in consumers’ media consumption activities. With so many options, low prices, and no ads, migrating to streaming platforms made more financial sense.
These days, if you use multiple streaming platforms, your monthly or annual bill is close to the cost of cable TV—and sometimes even higher. In fact, the average American spends up to $1,000 on subscriptions each year.
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Streaming platforms: How it all began
Most major streaming services have increased their prices significantly since their launch. The culprit? Streamflation: a byproduct of inflation that affects all sectors of the economy and, according to some analysts, triggers price increases of up to 25% per year.
One of the most famous examples is Netflix, which was initially founded in 1997 as a DVD rental platform and struggled in its initial phase. Then, in 2007, Netflix offered $8.99 packages with unlimited streaming options and cheaper options for users with limited streaming time.
Another example is HBO, now known as Max, which began offering streaming options in 2015. Although the starting price was $14.99 per month, users were able to enjoy premium shows and media that they couldn’t find elsewhere.
Disney+ launched its ad-free streaming service for $6.99, and Amazon Prime users received Prime Video at no additional cost if they opted for the company’s Prime membership option.
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Current costs and planned price increases
Prices for streaming services are currently rising to unprecedented levels, with no end in sight. In addition, these services are cracking down on password sharing, forcing consumers to pay a surcharge if multiple people use the same account.
Netflix
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Standard subscription with ads: $6.99 / month
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Standard subscription without advertising: $15.49 / month
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Premium subscription: $22.99 / month
Standard ad-free and premium subscriptions also include the option to add additional member spots for $7.99 per month.
Max and Bundles
Max offers individual and package subscriptions for monthly or annual plans.
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Standard subscription with ads: $9.99 / month or $99.99 / year
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Standard subscription without advertising: $16.99 / month or $169.99 / year
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Ultimate ad-free subscription: $20.00 / month or $209.99 / year
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Disney+, Hulu, Max bundle with advertising: $16.99 / month
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Disney+, Hulu, Max package without advertising: $29.99 / month
Disney+ and bundles
Disney+ offers standalone subscriptions and packages with Max for monthly or annual plans.
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Basic subscription for Disney+ with advertising: $7.99 / month
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Disney+ premium subscription without ads: $13.99 / month or $139.99 / year
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Bundle Duo Basic with advertising (Hulu + Disney+): $9.99 / month
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Bundle Duo Premium without advertising (Hulu + Disney+): $19.99 / month
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Bundle Trio Basic with advertising (Hulu + ESPN + Disney+): $14.99 / month
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Bundle Trio Premium without advertising (Hulu + ESPN + Disney+): $24.99 / month
Amazon
Although Amazon is not a subscription service in the true sense, the company offers Prime Video as part of your Prime membership or as a Prime Video membership with and without ads.
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Amazon Prime Membership: $14.99 / month or $139.00 / year
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Prime Video membership with advertising: $8.99 / month
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Prime Video membership without ads: additional $2.99 / month
Manage your subscriptions
As Warren Buffet once said, “Price is what you pay, value is what you get.” If you’re happy with the quality and offerings of your plan, that’s one thing. But if you can’t justify the price increases and rarely use these services, you can reduce your costs over time by rethinking what you’re willing to pay for.
One way to keep track of your monthly spending is to use a subscription tracker. These are apps that let you keep all your payments in one place. Setting them up will help you see what’s helping—and what’s hurting—your monthly balance and remove subscriptions you no longer need.
Packing
Price increases for subscription services aren’t going away anytime soon. Given higher operating costs and the general state of the economy, these price increases mean more spending for consumers as companies walk the line between reasonable and excessive.
If you’re paying more for subscription services than you originally intended, it’s a good idea to manage them to keep an eye on price increases. Knowing how much you’re spending and what you can do without if you stop using a service or can’t justify the cost compared to the value you receive can help you keep a good handle on your finances.
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This article originally appeared on GOBankingRates.com: The Hidden Price Increases: Why You Need to Check How Much Your Streaming Services Are Really Costing You Now
