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Discovery+ announces price hike, and Netflix could follow

Discovery+ announces price hike, and Netflix could follow
Posted at 11:25 AM, Oct 05, 2023

You might want to check your monthly bill soon if you have multiple streaming entertainment subscriptions. One streaming service has confirmed that one of its subscription tiers will cost customers more in November, while another may be considering raising its prices soon.

On Oct. 3, the Discovery+ streaming service announced a price hike for its ad-free monthly subscription from $6.99 to $8.99 (plus taxes). The new price goes into effect as of the November billing cycle, on or after Nov. 2, and applies to new and current customers.

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However, the company’s ad-lite monthly subscription price will remain $4.99.

“This is the first time Discovery+ has increased the price of a monthly subscription in these markets since launching in January 2021,” the company said in its press announcement. “This will allow us to continue to provide can’t-miss stories in the food, home, relationships, true crime, paranormal genres — plus so much more.”

Meanwhile, Netflix may be planning to raise the price of its ad-free subscription tier. The Wall Street Journal reported the company is discussing introducing the price hike in the coming months after the Hollywood actors’ strike ends.

It is unknown at this time specifically when the price increase may happen, or how much more Netflix plans to charge for ad-free streaming. The current monthly cost for the standard ad-free Netflix experience is $15.49.

MORE: Disney to raise prices on Disney+ and Hulu streaming services

Netflix did not confirm these internal company discussions or the possibility of higher prices.

The Netflix price increase would be the first since January 2022. The company say another change that year: It began offering a $7 per month ad-supported subscription in November 2022.

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Netflix and Discovery+ aren’t the only two streaming services to implement a price hike over the past 12 months. Every major streaming service, including Apple TV, the Disney Bundle (Disney+, Hulu and ESPN+), HBO Max (Now known as Max), Paramount+ and Peacock has charged their customers more for various services in 2023. According to the Journal, the average price increase for ad-free streaming services has jumped by about 25%.

The impact of two strikes in Hollywood (writers and actors) and a scramble to make streaming services more profitable seem to be the driving force behind the higher prices. Keeping streaming libraries current and diverse is expensive for streaming companies.

“You constantly need new content,” business analyst Michael Nathanson told the Journal in 2022.  “[streaming services] need a couple of big, nice theatrical movies every quarter to make it feel like it’s really valuable.”

What do you think of streaming services’ price increase? Is it worth it?

This story originally appeared on Don't Waste Your Money.