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- According to the BLS data, “Subscription and rental of video and video games” saw inflation of 19.5 percent in December. That is a category that includes subscription streaming services like Netflix, HBO Max, and Disney+.
- For comparison, “Cable, satellite, and live streaming television service” (which would include YouTube TV, Fubo, and Sling TV) rose 1.1 percent.
- There are likely a number of factors driving the surge: Some of the biggest streaming platforms, including Disney+, Hulu and HBO Max, all launched price increases late last year. Peacock and Netflix both raised prices earlier in the year.
- The end result is that prices for streaming video continue to rise, and consumers are forced to spend more to access to live sports that are increasingly spread across more streaming platforms.
- While the 19.5 percent bump is likely temporary (though Paramount+ will raise prices this month, and Netflix could always adjust its pricing), but it underscores a growing problem for the industry, and rising churn could become an end result.
submitted by /u/Neo2199
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