Amazon joins flood of streaming service price hikes for 2024
Consumers will be feeling the impact of streaming services' price increases in 2024, as nearly every major streamer has bumped up their subscription fees.
Why it matters: The price hikes are part of media companies' push to recoup their investments on the expensive and largely unprofitable pivot to streaming.
- The increases will likely push consumers to cheaper ad-supported plans, which brings in more revenue per person, appeasing investors.
Driving the news: Amazon Prime Video will charge an extra $2.99 per month for an ad-free version, the company announced Wednesday, as it releases commercials across its video platform for the first time.
- The increase will apply to subscribers to the standalone version of Prime Video ($8.99 per month) and to the cost of an Amazon Prime membership ($14.99 per month or $139 per year).
State of play: Amazon is only the latest subscription price hike announced in 2023 as streamers address Wall Street's increasing discontent with streamers' mounting losses.
- Max announced in January a $1 hike to its ad-free plan to $15.99. The ad-supported tier of Warner Bros. Discovery's service stayed at $9.99 per month.
- Netflix stopped offering its cheapest ad-free plan at $9.99 per month in July, pushing new and returning subscribers to its ad-supported plan at $6.99 per month.
- Peacock bumped its monthly cost up $1 to $5.99 and its ad-free version up $2 to $11.99 starting in August — the first price increase for NBCUniversal's streamer since its 2020 debut.
- Disney increased prices across its services in October. The ad-free tier for Disney+ jumped by $3 to $13.99 per month. Hulu without ads jumped $3 to $17.99 per month. The price of an ESPN+ monthly plan rose by $1 to $10.99.
What we're watching: Media companies also have been cracking down on password sharing. Netflix started informing customers of the new policy in May, and Disney began enforcing a similar policy in Canada in November.
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