Summary
Disney's decision to raise prices for Disney+ and Hulu, coupled with their strict enforcement against password sharing, is ill-timed considering the current shortage of new content resulting from ongoing strikes.
Streaming platforms like Hulu and Disney+ face ongoing criticism for their steep prices and lackluster content selection. Their decision to raise prices further exacerbates this issue and may result in a decline in subscribers. The current model of the streaming industry is unsustainable due to the failure of major platforms to provide high-quality content and new shows. Consequently, if subscribers continue to resist paying higher prices, the industry could potentially collapse.
In response to Netflix's price increases and stricter password sharing policies, Disney's streaming platforms are making similar changes that are not well-received by subscribers. The streaming industry has seen a surge in new platforms and increased demand during theater closures due to the COVID-19 pandemic. Initially, Netflix's actions seemed to give an advantage to competitors like Disney+, Hulu, HBO Max, and Peacock. However, this advantage is proving to be short-lived.
Starting October 12, Disney's major streaming platforms, Disney+ and Hulu, will implement significant price hikes. Disney+ Premium, without ads, will increase by 27% from $10.99 per month to $13.99 per month. Hulu's ad-free plan will see a 20% increase from $14.99 to $17.99 per month, with the bundle now priced at $19.99 per month. The ad-supported tiers for both Disney+ and Hulu will remain at $7.99 per month each, while the ad-free bundle will stay at $9.99 per month. Disney's ESPN+ will also experience a price increase from $9.99 to $10.99 per month. Adding to concerns about streaming, Disney is also taking steps to enforce password sharing restrictions, following in the footsteps of Netflix.
Disney+ & Hulu's Price Increases Prove How Tone-Deaf Streaming Services Are
Disney's decision to raise prices for its streaming services coincides with strikes by writers and actors, which is nonsensical considering the expected delays and decrease in new content. Unless the price hikes account for increased pay for those involved in content creation, it makes no sense to raise subscription rates for Disney+ and Hulu in the current state of the industry. This move by Disney, amidst criticisms of big studios for disregarding content creators and consumers, shows a lack of sensitivity. Disney has often been criticized for its high streaming prices without offering unique features, more content, or high-quality projects to justify such costs. Therefore, increasing prices at this time will only worsen the situation and contribute to the existing issues in the streaming industry, potentially leading to a significant decline in subscriber numbers.
How Price Increases Don't Make Sense For Current Streaming Trends
Price increases in the current streaming landscape don't make sense, especially given the tone-deaf announcement during the WGA and SAG-AFTRA's fight for fair wages and benefits. As theatrical successes recover from the pandemic's impacts, streaming platforms need to step up their game by offering higher-quality content, introducing new and compelling shows and movies to retain subscribers, and showing faith in popular TV shows by granting them multiple seasons. Unfortunately, recent streaming trends have failed to deliver on these fronts, putting platforms like Hulu and Disney+ at risk.
One platform that has gained notoriety for canceling TV shows after just one season, despite developing a significant following or trending highly, is Netflix. This approach diminishes loyalty to the streaming giant's brand. Viewers who grow to love a new show on Netflix must be highly skeptical about whether it will be renewed for another season. Furthermore, Netflix's popular ongoing shows like Stranger Things, You, and Cobra Kai are nearing their end, leaving the streamer in urgent need of replacements. However, there is a general consensus that Netflix's overall content quality is declining.
Similarly, Disney+ has faced criticism for a lack of high-quality original content. Even massive series like The Mandalorian have seen a decline in critical acclaim after several seasons.
Reportedly aiming to reduce costs, streaming services such as Max have taken the surprising step of removing their own original content from their platforms. Consequently, the ability to access these movies and TV shows has become almost impossible. One of the key attractions of streaming services' original content is its perpetual availability with a subscription, making this recent trend a perplexing decision for platforms to pursue. Given that consumers are already presented with numerous incentives to cancel their subscriptions, it is no wonder that there has been a rise in cancellations, a decline in quality among major streamers' new content, and a lack of compelling reasons for streaming services like Disney+, Hulu, and Netflix to increase their prices and expect continued consumer loyalty.
Netflix's Password-Sharing Rules Were Already A Worrying Sign For Streaming
The announcement by Netflix that it would start cracking down on password sharing marked a disappointing shift in the industry. In the past, Netflix had been lenient and even embraced this practice, as evident in a tweet they once made declaring that "Love is sharing a password." However, this change in policy from Netflix highlighted the growing challenges faced by streaming services in retaining their subscribers, with the expectation that competing platforms would soon adopt similar measures. Regrettably, Disney has already begun taking steps to monitor password sharing on its platforms like Disney+ and Hulu, suggesting that other streamers such as Max and Peacock will likely follow suit. These efforts ultimately undermine one of the most significant advantages of streaming services – the freedom to consume movies and television without unnecessary restrictions.
Why The Future Of Streaming Is Doomed
If the leading streaming services continue to raise prices for subscribers, other platforms will also be in trouble. Moreover, as more advertising plans emerge and original content fails to meet subscribers' expectations, streaming loses its original popularity and novelty. Prices will only continue to increase until major streaming services reach a point where subscribers are unwilling to pay, resulting in unsustainable platforms.
Whether major companies acquire other streaming services or the industry undergoes significant changes, the streaming wars will experience major shifts in the next few years due to the current models' lack of sustainability for studios and consumers. The changes made by Disney and Netflix are just the beginning, as the true impact of the streaming industry's bleak future will be felt in the fall of 2023 and winter of 2024. When strikes and studios' refusal to meet the terms of the WGA and SAG result in a decrease in new content and a decline in quality, a significant number of subscribers are likely to cancel their plans, leaving the future of streaming uncertain.
Sources: Disney+, Variety, Twitter
