Streaming platforms moderate price increases as subscribers push back on higher costs

Streaming platforms are starting to moderate subscription price increases as consumers face growing pressure from the cost of maintaining multiple services.

Data from Ampere Analysis shows that average price increases across Netflix, Disney+, and Amazon fell from 24% of the previous subscription price in 2023/24 to 14% in 2025/26. The average dollar increase declined from $1.67 to $1.54.

The change suggests streaming companies may be reaching the limits of what subscribers are willing to pay, while advertising and free streaming services are giving consumers more ways to control their entertainment spending.

Streaming price increases are getting smaller

The latest Ampere Analysis data points to a shift in how major streaming services approach subscription pricing. Across Netflix, Disney+, and Amazon Prime Video, the average increase fell substantially over the period covered by the research.

The average percentage increase dropped from 24% to 14%, while the average dollar increase declined from $1.67 to $1.54.

The difference may appear modest in dollar terms, but it reflects a broader change in the streaming business. Platforms that once relied heavily on repeated subscription increases to generate additional revenue are increasingly turning to other revenue sources.

Ampere senior research manager Jaanika Juntson said the decline in price increases comes as streaming companies diversify how they monetize their audiences. Advertising has become an increasingly important part of that strategy.

Ad-supported plans are becoming more important

The pressure on consumers is affecting subscription tiers differently. Ampere found that ad-free plans experienced average price increases of $1.62, compared with $1.21 for plans that include advertising.

That difference gives streaming companies an incentive to keep lower-cost ad-supported plans relatively affordable while pushing prices higher on ad-free subscriptions.

The strategy also gives consumers another way to manage monthly entertainment costs. Rather than canceling a service entirely, subscribers can choose to accept advertising in exchange for a lower price.

Netflix’s price increases have remained broadly stable over the past three years, according to Ampere. Disney+ has shown the clearest shift toward smaller increases, while Amazon has made the fewest price increases, which Ampere says likely reflects the broader role of Prime within Amazon’s retail business.

Consumers are reaching subscription fatigue

The change in pricing strategy comes as households increasingly weigh the combined cost of multiple streaming services.

A Deloitte study published in March found that the average U.S. household with a subscription reports spending $69 per month on streaming video subscriptions. With several platforms raising prices, even relatively small increases can add to household entertainment bills.

The same research found that 73% of consumers are frustrated that the entertainment services they subscribe to continue raising prices. Around 40% said they had recently cut back on entertainment subscriptions because of financial concerns.

Those figures indicate that price increases can carry greater risk for streaming companies. A higher monthly fee may generate more revenue from customers who stay, but it can also encourage subscribers to cancel or downgrade.

Content costs continue to push prices higher

Streaming companies still face pressure to spend heavily on programming. The pursuit of sports rights is one factor contributing to higher costs.

Paramount agreed to a 7-year deal, making Paramount+ the exclusive U.S. home for UFC events beginning in 2026, and Paramount later implemented price increases across its Essential and Premium tiers in several markets. The company said the increases supported continued investment in programming, including sports and other exclusive content.

The economics of expensive programming can make it difficult to maintain low subscription prices. As streaming services compete for sports, entertainment, and original programming, they need multiple revenue sources to cover those expenses.

That helps explain why advertising has become more important. Platforms can increase revenue without placing the entire burden on subscription fees.

Ad-supported subscriptions offer another escape from higher bills

Lower-priced ad-supported plans are also becoming a practical alternative for households trying to reduce their monthly streaming expenses.

A 2025 KPMG survey found that 45% of Americans either already use or are likely to use lower-cost ad-supported tiers from services such as Netflix and Hulu to reduce their entertainment spending.

This gives streaming companies a way to retain price-sensitive customers without abandoning subscription revenue entirely. Consumers, meanwhile, can reduce costs by accepting advertising rather than paying for premium ad-free access.

The growing popularity of this model suggests that advertising is becoming more than an additional revenue source. It is increasingly part of how streaming platforms manage the tension between rising content costs and consumer resistance to higher subscription prices.

Free streaming services are changing consumer behavior

Consumers are also gaining more alternatives outside traditional paid streaming subscriptions. Free, ad-supported streaming television services are becoming a larger part of the entertainment market.

A 2024 Horowitz Research survey found that 53% of free ad-supported streaming TV users had reduced their paid streaming subscriptions after adopting free services such as Tubi, Pluto TV, Freevee, YouTube, and Roku.

The shift gives consumers more leverage. Instead of maintaining multiple paid services simultaneously, viewers can switch between paid and free platforms depending on what they want to watch.

The growth of free services also changes the competitive environment for subscription platforms. Consumers no longer have to choose only between paying for another service and going without the content.

Streaming companies are changing their revenue strategy

The latest pricing data does not mean streaming subscriptions are becoming cheaper. Consumers are still facing higher costs across the industry, and several major services have increased prices significantly in recent years.

CableTV.com’s historical pricing data show that Peacock Premium Plus cost $9.99 per month in 2022 and later rose to $16.99 per month. Peacock then increased Premium Plus to $19.99 per month for new and returning subscribers effective Aug. 18, 2026.

The recent moderation in the average size of price increases, therefore, represents a change in direction rather than a reversal of the broader pricing trend.

Streaming companies appear increasingly aware that there is a limit to how much they can charge before customers respond by canceling, downgrading, or switching to free alternatives. Advertising provides another way to generate revenue without placing every increase directly on subscription fees.

For consumers, that could mean a streaming market with greater emphasis on tiered pricing, advertising, and free services rather than repeated large increases in premium subscription prices.

The overall cost of watching television and movies remains elevated, but the latest data suggest major platforms are becoming more cautious about the size of future price increases.

TL;DR

• Average price increases across Netflix, Disney+, and Amazon fell from 24% of the previous subscription price in 2023/24 to 14% in 2025/26.
• The average dollar increase declined from $1.67 to $1.54.
• Ad-free plans saw larger average increases than ad-supported plans, at $1.62 versus $1.21.
• Deloitte found that 73% of consumers are frustrated that the entertainment services they subscribe to keep raising prices.
• About 40% of consumers surveyed by Deloitte said they had reduced their entertainment subscriptions due to financial concerns.
• A Horowitz Research survey found that 53% of free ad-supported streaming users had reduced paid subscriptions.
• KPMG found that 45% of Americans already use or are likely to use lower-cost ad-supported streaming tiers.
• Rising costs for content and sports rights continue to pressure streaming companies to generate more revenue.
• Streaming platforms are increasingly relying on advertising and alternative pricing models instead of larger subscription price increases.

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This article was made with AI assistance and human editing.