Breaking: Major Streaming Service Slashes Subscription Price Amidst Industry-Wide Hikes

Summary

Starz has lowered the price of its annual subscription plan from $74.99 to $69.99 at a time when many other streamers are raising prices.

Starz President of Domestic Networks, Alison Hoffman, stated that the possibility of change arises due to Starz being among the few profitable streaming services. This move aims to acknowledge and reward existing customers, as well as entice new ones. Consequently, certain prices are increasing as streaming services have transitioned from prioritizing subscriber growth regardless of expenses to focusing on cost reduction and revenue expansion.

Starz, widely recognized for producing popular shows like Outlander, Party Down, and Black Sails, has taken an unexpected step amidst the ongoing trend of streaming service price increases. In a surprising move, Starz has reduced the cost of its annual subscription from $74.99 to $69.99. Existing subscribers have been notified about this change via email, and the revised price will be implemented in their upcoming billing cycles. Alison Hoffman, the President of Domestic Networks at Starz, shared her thoughts on this unexpected decision with IndieWire.

Why So Many Streaming Services Are Raising Prices

As one of the select streaming networks that consistently generates profit, we perpetually strive to enhance the business's prosperity while delivering exceptional value to our esteemed clientele. Our esteemed customers who have subscribed to our annual plan represent a significant asset, prompting us to actively seek strategies to expand the plan's subscriber base and express appreciation towards our existing loyal customers.

Prices for various streaming services have gone up in 2023. Disney had already increased its prices in December of the previous year and has now revealed that another hike is imminent. Joining them in this trend are HBO Max, Paramount Plus, Shudder, and Peacock. Even Starz jumped on the bandwagon by raising the price of its monthly subscription plan earlier this summer.

The increases in subscription prices are a result of a shift in mindset among those in power in the streaming industry. In the past, many major entertainment companies felt the need to have their own streaming service. They believed that investing billions to grow their subscriber bases would lead to profitability. However, this approach has not yielded the expected returns and profitability is now a luxury that only a few streaming services enjoy.

As subscriber growth slows down, streaming services like Disney Plus and Paramount Plus are increasing subscription prices in order to boost revenue. These price increases are being implemented alongside other strategies such as canceling already-filmed TV shows and movies to take advantage of tax breaks and licensing content to FAST services. While the decrease in Starz subscription price may not be significant, it is still an unexpected move in the current streaming industry.

Source: IndieWire