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Subscription Streaming Costs Now Rival Cable; Is Streaming Worth Keeping Amidst SAG, WGA Strikes?

Subscription Streaming Costs Now Rival Cable; Is Streaming Worth Keeping Amidst SAG, WGA Strikes?

It’s not an easy time to be a budget-conscious streaming customer. Last week, Disney announced a new round of price increases for its streaming services Disney+, Hulu, and ESPN+. This comes on the heels of Netflix discontinuing its cheapest ad-free tier earlier this summer in order to drive customers to its $15.49 ad-free plan or to its $6.99 ad-supported plan.

According to data from the Financial Times, paying for all of the top streaming services in the United States will cost $87 per month once the Disney price increases go into effect later this fall. In 2022, the same bundle of services cost $73, while the average cable subscription now runs $83 per month, making the top streaming services in the United States more expensive than pay TV.

There are complex economic factors involved in why streaming has grown so much more expensive in the last year, but the simplest explanation is that Wall Street is no longer rewarding media companies for gaudy subscriber numbers with higher stock prices. Those are now reserved only for streamers that regularly turn a profit. Thus far, only Netflix has managed to accomplish that goal, leading to plummeting share valuations for companies like Disney and Warner Bros. Discovery.

That means that these companies must now put the burden of achieving profitability on their customers, which is how all business work to a certain extent. But streaming users were lured in with the promise of cheap content without commercials, and there are many who won’t be happy with the new world order, especially in the midst of strikes by the Writers Guild of America (WGA) and Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA).

Many of those users could find themselves increasingly using free ad-supported streaming platforms if the strikes continue into the fall. Such an extended work stoppage would almost certainly eat into the programming schedules of major streaming services, giving users more reasons to cancel as costs rise and content is reduced.

Disney might be hardest hit and is in a precarious position thanks to its recently-announced price increases. Disney CEO Bob Iger stirred controversy by claiming that demands from writers and actors were not “realistic” in July, but considering how vulnerable a position his streamers are in, he may want to consider lobbying other studio heads to give into the unions’ modest demands.

“[Disney] is asking more and more of the customer . . . while the amount of new content on offer will likely decline,” analysts at media consultancy Enders told the Financial Times. “Lack of fresh content, particularly for Disney+, will increase churn.”

It will become harder and harder for subscription video streaming services to make the case to customers that they’re worth the price. There are many factors that keep streaming a good value overall, but customers might understandably start to walk away from paid streaming services if prices continue to rise and scripted content dries up because studios are unwilling to pay writers and actors.

Disney+

Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”

Disney+ has several plans with or without ads. Disney+ Basic with Ads costs $9.99 / month. If you don’t want ads, you can choose Disney+ Premium with No Ads which costs $15.99 / month.

The Premium plan also offers an annual option for $159.99 / year ($13.33/mo.).

If you’d like to add Hulu, choose Duo Basic (with ads) for $10.99 / month. Duo Premium offers Hulu and Disney+ ad-free for $19.99 / month.

If you want all three Disney streaming services, you can choose Trio Basic (ad-supported) or Trio Premium (ad-free). The Trio plans offer Disney+, Hulu, and ESPN+ (with Ads) for $9.99 / month. The Disney Bundle Premium (without Ads) for $26.99 / month.

The app supports unlimited downloads (on their Premium Plans), four simultaneous streamers, up to 7 profiles, 4K streaming, and includes hundreds of avatars.

The service includes 25+ original series, 10+ original movies, 7,500 past episodes, 100 recent movies, and 400 library titles including the entire Disney Vault.

You can see the full list of available Disney, Disney Channel, Star Wars, Pixar, Marvel, Nat Geo shows and movies, or all available Disney+ content by checking out our Disney+ Streaming Movie List.

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David covers the biggest news stories, live events, premieres, and informational pieces for The Streamable. Before joining TS, he wrote extensively for Screen Rant and has years of experience writing about the entertainment and streaming industries. He's a Broncos fan, streams on his Toshiba Fire TV, and his favorites include "Andor," "Rings of Power," and "Star Trek: Strange New Worlds."

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