Streaming Fees Increase And Subscribers Feel It Isn’t Worth It
With streaming fees rising and customer satisfaction falling, companies like Netflix and Disney may be headed for trouble. It’s no secret that costs are going up as companies try to make their platforms profitable, but recent surveys indicate that customers are increasingly dissatisfied with the platforms, making those price hikes hard to swallow. The TV industry has faced several complications in recent years, and it’s caused a decline in quality, and audiences have taken note.
Disney And More Raised Prices In 2024
Across the board, streaming fees have been going up as companies struggle to meet profit goals. Earlier this year, Disney raised the price on all its platforms including Disney Plus, Hulu, and ESPN Plus. Other services including Paramount Plus and Max have also raised prices this year, which is part of a broader trend over the last few years.
Quality Of Streaming Originals Declining
Streaming fees going up are natural and expected, but these prices coming in conjunction with a decline in quality is a huge problem. A recent survey from TiVo found that 2024 has seen a decline in customers describing on-demand TV programming as “moderate to very good.” That survey included both ad-free and ad-supported platforms, with the decline in satisfaction being notable for both models.
In addition to this subjective decline in overall quality, there are more objective factors that present this decline. Even as streaming fees are going up, companies are cutting back on production budgets. Those production cuts are reducing the quality and quantity of shows, with 2024 being the first year in a decade when the number of scripted programs dropped.
Production Cutting Costs
Some of the forces behind rising streaming fees are also contributing to the dip in quality. Inflation has made it more expensive to produce shows, forcing companies to either raise budgets or find ways to cut costs, which can cause quality to decline. Missed profit goals are also a driving factor, shrinking production budgets to cut costs while raising prices for consumers.
Impact From Strikes
One factor that has little to do with streaming fees but has contributed to 2024’s lack of quality TV is last year’s strikes. With both writers and actors on strike for much of 2023, many shows had to be moved back, which is likely a major part of why customer satisfaction declined so dramatically this year. With studios resuming normal production, satisfaction may stabilize as more new shows come to various platforms.
While the strikes may have exacerbated the problem, rising streaming fees and customer dissatisfaction were already a growing issue. Customers have been complaining for years about “re-bundling” as platforms became more like the expensive cable packages they replaced in the 2010s. Behind the scenes, dissatisfaction with how streamers produce shows and run writers’ rooms has also been growing, playing a major role in last year’s strikes, and being cited by some as a reason quality has declined.
Only Going To Get Worse
Some are calling 2024 the end of peak TV due to the growing dissatisfaction with what’s being produced and streaming fees continuing to rise. For years, platforms like Netflix brought customers in with must-watch original content and large libraries of great shows, coupled with low prices, but that era may be coming to an end. As customers grow tired of paying more for less, companies are going to have to find ways to keep people from looking for alternatives.
Source: Ars Technica
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