They're Charging WHAT?!

As I’m sure you’re all aware, I own two streaming accounts. The first, Netflix, I’ve had for a decade, and it’s used by my family. The second, Disney+, I received for my 30th birthday from my cousin, and realizing how much content on it I liked, I figured it was worth paying for renewals. I enjoy both services, despite not using them frequently.

That said, they don’t make it easy to stay subscribed. Netflix has increased its prices regularly over the last decade, while Disney+ upped its fee after introducing STAR. This didn’t bother me too much: my family pays for Netflix, while Disney+ has a yearly discount. However, I have my limits. And they’re currently being tested.

Let’s start with Netflix. I get emails reminding me of announcements and changes regularly, most of which I ignore. But I recently got this lovely message from them:

“ The cost of your plan has changed. This change takes effect
Tuesday, April 5th, 2022. You can view your updated membership
details by visiting your Account.

Plan
Standard

New Plan Price
$16.49

We hope you’re enjoying Netflix, and we're always adding new TV
shows and movies for our members to enjoy. ”

Interesting…

I’m worried about this increase. Minimum wage in Ontario is currently $15 an hour. This change is a little over $16 a month. That’s above hourly wage. While it’s a one-time payment monthly, hence I’m not overly concerned, it still adds up. Not including taxes, $16.50 monthly becomes $198 a year. Considering all of my living expenses, as well as how much I make at work, that’s a big ask.

I know this’ll change again. After all, streaming services are popping up frequently nowadays, taking their studio content with them in the process. $16.50 a month might not be much now, but it’s going to increase again. I wouldn’t be surprised if that $16.50 a month becomes $20 a month, possibly more. I hope I’m wrong, but I doubt it.

Anyway, Netflix raised its monthly asking price. I can somewhat live with that. But what about Disney+? I pay for $132 yearly at the moment, which is still a big ask. Surely they’re done with price increases now that STAR exists, right? Right?!

Unfortunately, no. In a recent article from Forbes, it was revealed by Disney CEO Bob Chapek to investors that:

“‘By 2023, we want to get to a steady-state, which is even higher than we have right now. And I think that will give us the impetus to increase that price/value relationship even higher and then have the flexibility if we were to so choose to then look at price increases on our service. But it's all about content, content, content.’”

This isn’t an official declaration that Disney+ will up its fees. Nor does it specify by how much. But that it’s being discussed at all is alarming. Investors often have a say on pricing of consumer goods. We’ve already seen that with food and gas.

Additionally, $132 Disney+ is the yearly option. It’s also the cheaper option. The monthly service is about $13 Canadian. That’s cheaper than Netflix, but it’s inching toward an hour of minimum wage work. And given that I pay for it out of pocket, an increase in price is alarming. It’s also not what I want.

But this is the problem with streaming services. Netflix was once top dog, so it didn’t have much to compete with. That raised other issues (which I won’t delve into), but I didn’t have to shell out extra money for separate services. I also didn’t have to worry about price gouging. I don’t have that luxury anymore because of the variety of streaming platforms.

That worries me. It worries me because of the fractured nature of streaming, and it worries me because it burns into my finances. I can complain about these services endlessly, and I have, but the financial strain is my biggest worry. I don’t like that.

Of course, there’s also the issue of ads, something Disney+ is also contemplating. I’ve seen how disruptive ads are to YouTube videos. I also am not fond of many of the commercials on TV, although I’ve gotten used to that. I got into streaming to get away from that, and having it return for a cheaper payment plan isn’t really a worthwhile compromise.

I know I’m not alone here. On the Disney+ end, the service has been struggling due to the pandemic, and its numbers aren’t as high as they’d hoped. (Premier Access was also an issue, but I’ve covered that before.) People don’t have the money that they used to, and Disney’s aware of this. So wouldn’t it make sense to court viewers?

Think about it: what if Netflix and Disney+ dropped their prices to more reasonable numbers? And what if they had incentives to get people to watch their content? I know Netflix scored big with its acquisition of Studio Ghibli’s catalogue, but that’s not enough. If streaming services want customers, they should be conducive to their needs. Like movie theatres, they need a better hook. Raising prices isn’t it.

I probably won’t be heard by Netflix or Disney+’s management. I know there are people far more business-savvy than I am in charge of the services. I also know my suggestions will cost money, something neither service wants to lose. But I’m a consumer. And since I most-likely better understand what the consumer wants, it’s only fair if I’m not ignored. Because I’m the one paying here, not them.

Besides, money definitely speaks. And if people’s money suddenly says “no more”, what impact will that have on streaming?