Why Streaming Services Keep Raising Prices and How to Save

Streaming prices rise as costs and competition grow

Peacock increased subscription prices for the fourth consecutive year, with its ad-free plan now costing $19.99 monthly, matching Netflix's standard tier. NBCUniversal's streaming service follows an industry-wide trend - every major platform has raised prices in the past year, according to Business Insider. It would cost over $137 a month total to individually buy the ad-free versions of Netflix, Disney+, Hulu, HBO Max, Peacock, Paramount+, Apple TV, and Amazon Prime Video.

Production budgets and profitability pressures drive increases

Streamers face ballooning content costs while pursuing profitability. Peacock's latest hike comes despite recently reporting its first profitable quarter, notes Engadget. Services must fund original programming and licensing deals, with Peacock spending heavily on reality TV like Love Island spinoffs and Bravo content. Business Insider reports Hollywood studios are also exploring free ad-supported tiers to attract cost-conscious viewers.

Ad-supported plans gain popularity as prices climb

Nearly half (48%) of premium streaming subscriptions now use ad-supported tiers, up from 39% in early 2024, per Antenna data cited by Business Insider. According to Antenna, 59% of new subscriptions were for ad-supported plans, in line with levels from the past two years. Meanwhile, ad-free subscriptions experienced net cancellations during the same period as consumers react to rising costs.

Bundling strategies can significantly reduce monthly bills

Savvy subscribers can save over $40 monthly by bundling services. Business Insider calculates the HBO Max-Hulu-Disney+ bundle costs $32.99 instead of $56.47 purchased separately. Pairing Peacock with Apple TV brings the combined price down to $19.99 - matching Peacock's new standalone ad-free cost. Ad-supported versions of seven major services total about $75 monthly unbundled.

Free streaming services gain market share

Free platforms like YouTube, Tubi, and The Roku Channel made up 19.1% of viewership on US TVs in May, Nielsen found, compared to a 17.2% share in May 2025. Business Insider reports media companies now experiment with free offerings, though analysts warn of undermining paid subscriptions if they provide too much content.

How to manage rising streaming costs

Consumers can:

Switch to ad-supported tiers (saving $20-$40 monthly per service)

Use bundles like Disney's trio or Verizon's Paramount+/Showtime deal

Rotate subscriptions monthly based on content needs

Explore free alternatives like Pluto TV or network apps

Share accounts where permitted under service terms

The future of streaming economics

With Peacock's latest increase reflecting broader industry patterns, consumers should expect continued price adjustments as streamers balance content investment against subscriber retention. Media analyst Paolo Pescatore tells Business Insider the challenge lies in offering enough free content to attract viewers without devaluing premium offerings.