Why Do Streaming TV Services Keep Getting More Expensive?

Why Do Streaming TV Services Keep Getting More Expensive?

Every other month, one of the mainstreaming TV services—and there are a lot of them—increases its fees. What began as a low-cost alternative to cable has increased in price. What is the reason for this?

There hasn't been a single streaming TV provider that hasn't increased its prices at some point. Netflix is the most recent service to do so at writing in January 2022. YouTube TV made headlines not long ago for boosting fees as well. Why Do Streaming TV Services Keep Getting More Expensive? Let's have a look.

Why Do Streaming TV Services Keep Getting More Expensive?

Here are the reasons why Streaming TV Services Keep Getting More Expensive.

  • Streaming TV in the Beginning

  • Bigger Bundles With Bigger Price Tags

  • Media Companies Call the Shots

  • Costs Are Rising Everywhere

1. Streaming TV in the Beginning

Let's start at the commencement of streaming television services. Although YouTube TV was not the first to launch, its trajectory is like other services. It debuted in 2017 with roughly 40 channels for $35 per month, including ABC, CBS, FOX, and NBC.

YouTube-unveils-live-TV-bundle-for-$35-a-month-with-more-than-40-channels

It featured a fair number of channels at the time. But it, like any other streaming service, had significant flaws. Because of the way cable channels function, this is the case. Viacom, for example, owns many networks that it will not sell. You either receive all of them or none of them.

This is why "cable-a-la-carte" has never been a viable option. For YouTube TV to offer TBS, it will need to strike a contract with Turner Broadcasting. It will include TNT, AMC, and CNN. You can't just pay for TBS since YouTube doesn't have the funds to do so.

2. Bigger Bundles With Bigger Price Tags

With the inclusion of TBS, TNT, CNN, and other channels, YouTube TV's subscription was hiked to $40 per month in 2018. With the addition of Discovery channels a year later, the price increased to $50 per month. Then, in 2020, with the addition of Viacom channels, the price rose to a stunning $65 per month.

The cost of YouTube TV has risen from $35 to $65 per month in only three years. What began as a modest package of roughly 40 channels has grown to more than 85. Sling TV, Hulu Live TV, Fubo TV, and Playstation Vue have all shown the same story (until they shut down).

What caused Playstation Vue to go offline? The main reason for Sony's exit from the sector was "expensive content and network partnerships." That's also why your monthly bill continues rising and rising. Whether you like it or not, you're paying for those network arrangements.

3. Media Companies Call the Shots

People are unhappy when services raise their costs, but this isn't fair. Like you, subscribers to streaming services are at the mercy of the firms that own the channels.

ESPN-Logo.

"If it had ESPN, it'd be a wonderful service!" some say. Even a gigantic corporation like Google won't be able to get only ESPN for YouTube TV. Disney owns ESPN, which bundles it with some other networks. So you get your ESPN fix, but you also have to pay for a bunch of other channels.

You'd think streaming providers would be fighting to undercut their competitors. But prices are out of their control. A streaming service with Viacom, Disney, and FOX networks will cost about the same as any other service with those channels. The media companies are setting the prices.

4. Costs Are Rising Everywhere

The rising price of live television may not be limited to streaming. Prices for "old school" cable TV have also risen over time. IN SOME CIRCUMSTANCES, streaming TV providers might cost the same as or more than cable.

In late 2021, Comcast, one of the largest cable TV providers, hiked TV prices by 3%. Broadcast television fees—ABC, CBS, FOX, and NBC—and regional sports fees—have risen in the last five years. 

Conclusion

These are a few reasons why streaming TV services continue to rise in price. Begin comment Despite this. All internet TV services are still required to use the same costly carrier fee system as traditional cable. The only significant difference is that prices are finally beginning to reflect this.

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Paul Syverson
WRITTEN BY
Paul Syverson
Paul Syverson is the founder of Product Reviews. Paul is a computer scientist; he used to carry out a handful of significant studies which contributed to bringing in many special features on the site. He has a huge passion for computers and other tech products. He is always diligent in delivering quality writings to bring the most value to people. Syverson.org |

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