{"id":7813,"date":"2022-01-30T12:31:07","date_gmt":"2022-01-30T12:31:07","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/30\/why-do-streaming-tv-services-keep-getting-more-expensive\/"},"modified":"2022-01-30T12:31:07","modified_gmt":"2022-01-30T12:31:07","slug":"why-do-streaming-tv-services-keep-getting-more-expensive","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/30\/why-do-streaming-tv-services-keep-getting-more-expensive\/","title":{"rendered":"Why Do Streaming TV Services Keep Getting More Expensive?"},"content":{"rendered":"

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Anna Quelhas\/Shutterstock.com<\/a><\/span><\/figcaption><\/figure>\n

It seems like every other month one of the major streaming TV services\u2014which there are a lot of\u2014raises its prices. What started as an affordable way to ditch cable has slowly crept up in price. Why is that?<\/p>\n

There\u2019s not a single streaming TV service that hasn\u2019t raised its prices at least once. At the time of writing in January 2022, Netflix is the latest service to do it<\/a>. Not long ago, YouTube TV made waves for raising prices too<\/a>. Is there a reason for all this beyond corporate greed? Let\u2019s find out.<\/p>\n

RELATED:<\/strong> Your Netflix Subscription Is Going Up in Price Again<\/em><\/strong><\/a><\/p>\n

Streaming TV in the Beginning<\/h2>\n

Let\u2019s go back to the beginning of streaming TV services. YouTube TV wasn\u2019t the first on the scene, but its trajectory is very similar to other services. It launched in 2017 with around 40 channels, including ABC, CBS, FOX, and NBC, for $35 per month.<\/p>\n

For the time, it offered a very good selection of channels, but like every other streaming service, it had some holes. This is due to how cable channels work. Companies such as Viacom own handfuls of channels that they won\u2019t split up. You get all of them or none.<\/p>\n

This is why the idea of \u201ca la carte cable\u201d has never been possible. In order for YouTube TV to offer you TBS, it needs to make a deal with Turner Broadcasting that includes its other channels, such as TNT, AMC, and CNN. You can\u2019t only pay for TBS because YouTube can\u2019t only pay for TBS.<\/p>\n

So, to fill the gaps in programming that may keep some people from subscribing, streaming services make deals to get more channels.<\/p>\n

Bigger Bundles With Bigger Price Tags<\/h2>\n
\"YouTube
YouTube TV<\/span><\/figcaption><\/figure>\n

In 2018, YouTube TV raised prices to $40 per month with the addition of TBS, TNT, CNN, and more channels. A year later, the price went up to $50 per month as Discovery channels were added. Then in 2020, the price increased to a whopping $65 per month with the addition of Viacom channels.<\/p>\n

In just three short years the price of YouTube TV went from $35 to $65 per month. What started as a small package of around 40 channels has ballooned to over 85. This same story has played out on Sling TV, Hulu Live TV, Fubo TV, and Playstation Vue (until it shut down).<\/p>\n

Why did Playstation Vue shut down? Sony cited<\/a> \u201cexpensive content and network deals\u201d as the main cause for getting out of the industry. That\u2019s the same reason why your monthly bill keeps getting higher and higher. You\u2019re paying for those network deals whether they matter to you or not.<\/p>\n

Media Companies Call the Shots<\/h2>\n

When services raise their prices, people understandably get upset at the service, but that\u2019s not entirely fair. Streaming services and subscribers like you are all essentially at the mercy of the companies who own the channels.<\/p>\n

People say \u201cif it just had ESPN it\u2019d be a perfect service!\u201d Well, it\u2019s not possible for even a behemoth company like Google to get only<\/em> ESPN for YouTube TV. Disney owns ESPN and bundles it with a bunch of other channels. So you get your wish of ESPN, but now you\u2019re paying for a bunch of other channels too.<\/p>\n

You might think that streaming services would be battling to undercut their competitors, but the prices are out of their hands to some degree. A streaming service that has Viacom, Disney, and FOX channels is going to cost pretty much the same as any other service that has those same channels. The media companies are setting the prices.<\/p>\n

Streaming services don\u2019t have much pull, either. If they disagree on pricing, the media company can simply say \u201cokay, then you don\u2019t get our channels.\u201d And what happens when these situations occur like it nearly did with YouTube TV and Disney<\/a>? People get mad at the streaming service and go somewhere that does have the channels. It mostly hurts the streaming service, not the media company.<\/p>\n

Costs Are Rising Everywhere<\/h2>\n

The inflating costs of live TV may not be exclusive to streaming TV. \u201cOld school\u201d cable TV prices have been slowly increasing over the years as well. In some cases, streaming TV services cost the same or more than cable.<\/p>\n

Comcast\u2014one of the biggest cable TV providers\u2014raised TV prices by 3%<\/a> across the board in late 2021. Broadcast TV fees\u2014ABC, CBS, FOX, and NBC\u2014and regional sports fees have gone up considerably in the last five years. Comcast is in the same position as YouTube TV; it\u2019s not the one setting those prices.<\/p>\n

So it seems that TV is getting more expensive no matter how you get it. Streaming TV and cable companies are all at the mercy of the media companies. The main difference is streaming TV services started<\/em> with low costs, but it was unsustainable to add content and keep those aggressive prices.<\/p>\n

Will It Ever Get Better?<\/h2>\n
\"Sling
Sling TV<\/span><\/figcaption><\/figure>\n

This all sounds pretty grim and it truly is a crappy situation for everyone but the media companies. Is there any way to get out of this nasty cycle? Unfortunately, probably not.<\/p>\n

The media companies are the ones making this situation as bad as it is and there\u2019s not much incentive for them to fix it. People want the channels they want and they expect their streaming service to have them. The pressure is on those services to get the channels, and the media companies are more than happy to force them to license more than they want.<\/p>\n

Sling TV<\/a> is one of the few services that sorta gives you the choice of paying for only the channels you want, but it\u2019s still just picking between bloated bundles. Everyone wants the dream of \u201ca la carte TV,\u201d but there\u2019s nothing pushing media companies to offer that, and if they did, it\u2019d likely be a lot more expensive than you\u2019d want.<\/p>\n

The cheapest way to watch TV today is still good \u2018ol OTA TV<\/a>. A simple, affordable antenna can bring in more channels than you might think, including the big ones like ABC, CBS, FOX, and NBC. The picture quality is sometimes much better than cable or streaming, too.<\/p>\n

The moral of the story is prices keep rising because the cost of the content keeps rising. There aren\u2019t many winners in this situation. We\u2019re all being forced to choose between paying more than we want or going without.<\/p>\n

RELATED:<\/strong> Why Free OTA TV Beats Cable on Picture Quality<\/em><\/strong><\/a><\/p>\n<\/div>\n