What is streamflation? (And will streaming prices keep rising?)
By Kate Ashford, NerdWallet
If you use streaming services for videos or video games, you might have noticed some higher prices — or “streamflation” — on your credit card bills.
While monthly inflation was only 0.3% in December, the category of “subscription and rental of video and video games” saw prices increase 19.5%, according to the Bureau of Labor Statistics.
This includes streaming services like Netflix, HBO Max, Disney+ and Hulu, which all boosted subscription prices last year. (It does not include live streaming television.)
Why streaming prices are outpacing inflation
The jump in cost is due, in part, to the evolution of the streaming industry, says Paul Erickson, principal media and entertainment analyst for Omdia, a tech research and advisory group.
During the pandemic, Erickson says, streaming companies prioritized subscriber growth above all else. Now that streaming audiences are largely stable, companies are under more pressure to be profitable and sustainable.
“We have this drive for better profitability and business performance, teamed up with the rising cost of content,” Erickson says. “By and large, the cost of content is always upward.”