It’s the end of “good deals” on streaming platforms. As of this Wednesday, Disney+ is the latest heavyweight in the sector to increase its prices.
An increase of 33%. Subscription to the Disney+ streaming platform costs 12 euros per month since November 1. Three years ago, it was almost half as much. Behind this price increase, the platform of the big-eared mouse is in reality only following the movement. Ten years ago, Netflix’s offer was unbeatable with a basic plan at 8 euros per month. However, since mid-October, this formula has increased to 11 euros. Apple TV+ has doubled its price in three years to 10 euros per month. Amazon Prime started the movement by increasing its subscription by 40%.
Today, two out of three French people subscribe to at least one platform. But the bill becomes steep. It costs 39 euros per month to subscribe to these four heavyweights in the sector, or 60% more than when they were launched. However, the average consumer budget is not expandable: 42 euros per month, according to a study by BearingPoint.
“Giving new opportunities to advertisers”
However, this is not the end of a model. Behind these attractive prices at the start, there was a deliberate strategy to attract customers to these new players where DVD was in free fall and cinema attendance was losing momentum. And then, these platforms have eaten their bread: in the economic context of high interest rates, they are clearly aiming for profitability. Netflix now charges for sharing codes with people who are not from our household, for example. And it worked so well that Disney+ is going to do the same.
Finally, these platforms, which have invented a new way of watching programs, are actually falling into line. They were built by copying – at a lower price – the pay channels. The public followed it so much that“we must give new opportunities to our advertisers”, explains the boss of Disney+. Clearly, since viewers are starting to desert traditional channels, let’s put advertising on these platforms.
The consequence is that all subscription prices increase… except those with advertising breaks. In parallel with the increase in its prices, Disney+ is also launching a formula with advertising at 6 euros, like Netflix. The prize goes to Amazon prime: the platform will not soon increase its prices, but is directly transforming itself into a platform with advertising.
Enough to regret the pay channel packages of the 2000s: Canal+, which made the bet of offering package packages with several platforms, such as Apple TV+, may have made the right choice to stay in the race.