streaming

“so-tired”:-disney+,-hulu,-espn+-prices-increase-by-up-to-25-percent-in-october

“So tired”: Disney+, Hulu, ESPN+ prices increase by up to 25 percent in October

Disney, Disney Plus, ESPN, streaming, Tech / /

The cycle continues —

Not even ad tiers are safe as Disney looks to coax people into bundle packages.

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The Doctor and Ruby in 1960s

Enlarge / A scene from the new season of Doctor Who, which is streaming on Disney+.

Disney+

Disney+, Hulu, and ESPN+ will get more expensive as of October 17, whether users have a subscription with or without ads. After most recently jacking up streaming prices in October 2023, The Walt Disney Company is raising subscription fees by as much as 25 percent, depending on the streaming service and plan.

Here’s how pricing will look in October compared to now:

Now As of October 17
Disney+ with ads $8/month $10/month
Disney+ without ads $14/month

$140/year		 $16/month

$160/year
Hulu with ads $8/year

$80/year		 $10/month

$100/year
Hulu without ads $18/month $19/month
Hulu and Live TV with ads $77/month  $83/month
Hulu and Live TV without ads $90/month $96/month
Disney+ and Hulu with ads $10/month $11/month
Disney+ and Hulu without ads $20/month No change
ESPN+ $11/month

$110/year		 $12/month

$120/year
Disney+, Hulu, and ESPN+ with ads $15 No change
Disney+, Hulu, and ESPN+ without ads $25 No change

Disney didn’t announce any pricing changes for the bundle that contains Disney+, sister streaming service Hulu, and Warner Bros. Discovery’s rival streaming platform, Max.

Based on the updated pricing, Disney is seemingly trying to coax people to sign up for one of its streaming bundles, which combine multiple services for a lower price than if the services were each subscribed to individually. Streaming companies have been trying to use bundles to deter people from frequently canceling their streaming subscriptions. But as we’ve written before, streaming bundles don’t address subscribers’ complaints around incessant price hikes, content quality, confusing packages, or features.

Another price hike

One of the biggest problems that streaming subscribers, especially long-term ones, are facing is ever-rising prices. Disney already increased prices in October 2023, meaning Disney+, Hulu, and ESPN+ are facing their second price hikes in about a year.

Early reactions online, including on forums like Reddit, show people dissatisfied with streaming price hikes that don’t seem to align with the quality of content available. For example, Reddit user Montysucker wrote: “easy[,] cancel now,” adding:

“The enshittification of media in the last few years is insane and it’s wild how seemingly no one cares anymore about making something that is actually enjoyable to watch and not their egotistic[al] pipe dream.”

Of course, many expressed being overwhelmed with continuing to see streaming prices rise, as Slow_Investment_2211 wrote:

On October 12, 2023, as Variety summarized, Disney+ without ads went up by 27 percent, from $11 to $14 per month. Hulu without ads went up 20 percent ($15 to $18/month). Hulu with Live packages each also increased by $7 at the time, while ESPN+ pricing increased by $1.

Disney paired the price hike announcement with the revealing of new upcoming features for Disney+. However, the new linear channels are little comfort for people who don’t use Disney+.

The new channels will be ABC News Live, which Disney+ users can access on September 4, and channels “focused on preschool content, featuring TV series and shorts available on Disney+.” Disney+ will also get four more channels (or as Disney’s calling them, playlists) that show: 1) “Seasonal Content” from Disney+; 2) “Epic Stories” from big franchises like Marvel and Star Wars; 3) “Throwbacks” with “nostalgic pop culture”; and 4) “Real Life” documentaries.

It’s possible that Disney will introduce more channels to appeal to more users. But with all the price hikes that streaming subscribers have endured over the past few years, many would prefer avoiding price bumps that are partially for extra channels that they may never watch. Charging for unwanted content in media packages that are already priced questionably is reminiscent of cable, something that streaming was initially supposed to replace, not replicate.

Subscribers to Disney’s trio of streaming services will be unlikely to be alone in facing price hikes for long; analysts suspect Netflix pricing will also increase this year.

“So tired”: Disney+, Hulu, ESPN+ prices increase by up to 25 percent in October Read More »

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Netflix is kicking US subscribers off its cheapest ad-free plan soon

ads, netflix, streaming, Tech / /

It was only a matter of time —

Subscribers will have to pay $15.49 for commercial-free Netflix.

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cobra kai

Enlarge / Ad-free Basic subscribers will be crane-kicked off the plan soon.

Netflix/YouTube

Netflix today confirmed suspicions that it will stop letting people pay $12 per month to stream without commercials.

The ad-free Basic plan was the cheapest way to watch Netflix without commercials. The plan limits users to 720p resolution and one device and lets people download content. Netflix stopped offering the Basic plan to new subscribers in January. In June, Netflix started booting subscribers in the UK and Canada off the plan and automatically put them onto a cheaper subscription plan with ads.

In a letter to shareholders today [PDF], Netflix confirmed publicly for the first time that it “will now start” to phase out the ad-free Basic plan in the US and France. This will make the cheapest commercial-free Netflix plan $15.49/month in the US. That Standard plan supports up to two devices, downloads, and 1080p resolution.

Netflix thinks killing the Basic plan will help it gain more subscribers who watch commercials, which, on average, generates more revenue for the company.

As expected from a streaming company these days, Netflix touted its ad tier to shareholders, noting that the $7 tier now represents “over 45 percent” of new sign-ups in areas where it’s sold. Per Netflix’s letter, ads will only be an increasingly larger part of its strategy, as Netflix aims to “achieve critical ad subscriber scale for advertisers in our ad countries in 2025, creating a strong base from which we can further increase our ad membership in 2026 and beyond.”

The news comes as streamers grapple with increasing streaming subscription costs. Netflix most recently hiked pricing in October. In January, the company suggested to shareholders that more price hikes were possible, saying that it would “occasionally ask our members to pay a little extra to reflect” platform improvements.

Not cozying up with competition

If today’s news makes you hope for a convenient streaming-only deal that lets you subscribe to Netflix and another video streaming service for cheaper, you’re out of luck. Netflix today said it’s not interested in streaming-only bundles.

Bundle deals, which combine streaming and other services for a cheaper subscription rate, have become the streaming industry’s answer to high cancellation rates among subscribers, including those who quickly cancel and resubscribe depending on what’s available to stream that month.

In its letter, Netflix noted that although cable or mobile providers or device-makers may offer deals combining Netflix and another streaming service, Netflix does not make deals that bundle it with another rival streamer, like Disney+ or Max. The company claimed that Netflix is already “a go-to destination,” which “limits the benefit to Netflix of bundling directly with other streamers.”

That means if you’re hoping to save money on your Netflix subscription, which keeps getting more expensive, the only options are to watch Netflix with commercials or get a cable-reminiscent bundle that includes a different kind of service, like Comcast or Verizon Wireless.

We know which option Netflix would like you to pick. But for frustrated streamers, finding a reasonable way to watch all the stuff you want online the way you want keeps getting harder.

Netflix added 8 million subscribers in Q2 2024, it said today. It’s still the biggest video streaming service by subscriber count at 278 million. Amazon Prime Video, which claimed “over 200 million” users in April, follows.

Netflix is kicking US subscribers off its cheapest ad-free plan soon Read More »

report:-apple-tv+-will-soon-get-a-lot-more-movies-made-by-studios-other-than-apple

Report: Apple TV+ will soon get a lot more movies made by studios other than Apple

Apple, Apple TV, culture, films, movies, streaming, Tech / /

Streaming services —

Apple TV+ series have made an impact, but its films have been less successful lately.

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A photo of a TV showing the landing page for Argylle in the Apple TV+ app

Enlarge / Apple seeks to continue to augment its library of original films like Argylle with films from other studios.

Apple TV+ has carved a niche for itself with strong original programming, and while it’s still far behind the likes of Netflix in terms of subscribers, it has seen a fairly strong initial run. To build on that, Apple is talking with major studios about ways to complement its slate of original programming with films from other companies in order to expand and extend the service’s appeal.

That’s according to Bloomberg reporters Lucas Shaw and Thomas Buckley, who cite people familiar with Apple’s workings. Those sources say Apple is “having discussions” with more than one large film studio about bringing more movies to the service.

Apple previously experimented with this by licensing around 50 movies and making them available on the service for limited runs over the past several months. That experiment seems to have gone well, leading Apple to begin laying the groundwork for expanding on that.

That test run was just in the United States. Bloomberg claims the focus this time is international, with the possibility of new films not just in the US but in other regions, too.

Hollywood studios have reportedly been anticipating this move. As you may have noticed amid the numerous subscription service price hikes, media companies have begun putting greater emphasis on profitability after the conclusion of a long period where subscriber growth at any cost was the goal. Licensing deals like this can help with that new goal.

It’s worth noting that while Apple has found some big successes in terms of series (Ted Lasso, Severance, The Morning Show) it has struggled to make as much of an impact with its movies. Despite big stars and budgets, the films have not always made as much cultural impact as the shows.

That means that bringing in films from studios with a more proven record can be a win-win: It will help Apple bolster the TV+ subscription service while generating revenue for film studios that are struggling to keep up in the new era.

Services like TV+ are a growing part of Apple’s business, which has historically been focused on hardware sales. In the second quarter of its 2024 fiscal year, the services bucket accounted for $23.9 billion in quarterly revenue, which is more than half the revenue generated by iPhone hardware sales.

Report: Apple TV+ will soon get a lot more movies made by studios other than Apple Read More »

streaming’s-bundling-obsession-ignores-the-real-problem-with-subscription-costs

Streaming’s bundling obsession ignores the real problem with subscription costs

streaming, Tech / /
scrambled tv TV with human hand with TV remote control

Video streaming providers have a big churn problem. While many streaming companies are not profitable yet, the entire industry is grappling with high and fast cancellation rates.

Users who sign up for streaming services only to cancel a few months later, likely because they watched what they wanted to already or are trying to save money, has created huge churn concerns for streaming companies. Those companies are largely responding with packages that bundle their services with other services, including rival streaming platforms. But with streaming subscribers already pushed to their financial limits, it’s time for streaming providers to earn their keep, not piggyback on others.

This week, media research firm Hub Entertainment Research published its 2024 Monetization of Video report with findings from June interviews of 1,600 TV viewers ages 16 to 74. The respondents reportedly each watch at least one hour of TV weekly, and the sample is “US census balanced,” per Hub. When Hub asked respondents if they will “still have/use” their video streaming services a year from now, 85 percent of those using ad-free services said they definitely or probably will, compared to 74 percent of subscribers of streaming services with ads. Further suggesting that ad-free subscription tiers garner more loyalty, 15 percent of ad-free subscribers said they “might/might not” or “probably/definitely won’t” have their subscription next year versus 26 percent of ad subscribers.

Hub Entertainment Research

“Those paying extra for ad-free services say they are more likely to keep that service than cheaper ad-supported plans,” the report says. “The act of paying more potentially increases perceived loyalty to that expense.”

Streaming providers charge less for subscriptions that show commercials because they’re able to make up the lost revenue through ad sales. Streaming firms like Netflix say they get higher monthly average revenue per user (ARPU) from ad subscribers than those who pay more for commercial-free plans. Despite the lower prices, Hub’s research found that 25 percent of respondents associate “excellent” value with paid streaming video on demand (SVOD) services with ads compared to 22 percent who think the same of SVOD without ads.

Churn troubles

Hub’s report also highlighted high streaming cancellation rates, noting that 50 percent of respondents “sign up, cancel, then re-subscribe to the same service.” Earlier this month Ampere Analysis also detailed high churn rates, saying that 42 percent of US streaming subscribers “regularly subscribe, cancel, and resubscribe” (Ampere said it examined “anonymized subscription receipt data from a panel of 3 million opted-in US email users” between February and March 2024 for its survey).

“As the SVOD market in the US has become increasingly saturated, new subscribers are harder to find, which makes retention all the more important,” said Daniel Monaghan, research manager at Ampere Analysis, said in a statement accompanying the findings.

Streaming providers have largely adopted bundling to combat high cancellation rates, with the idea being that people are less likely to pull the plug on one service if it’s tied to others. In Hub’s report, 37 percent of respondents said they’re “less likely to cancel and then resubscribe to a bundle of multiple services compared to an individual service.”

Bundles also carry price savings, a key driver for streaming subscriptions. Per Hub’s report and following a slew of streaming price hikes, people are approaching the limit of what they’re willing to spend on streaming subscriptions:

Hub Entertainment Research

But streaming services could better prove their value if they went beyond pricing and tried building loyalty through improved selection and features.

Streaming’s bundling obsession ignores the real problem with subscription costs Read More »

dvds-are-dying-right-as-streaming-has-made-them-appealing-again

DVDs are dying right as streaming has made them appealing again

Blu-ray, dvd, streaming, Tech / /

RIP Redbox —

You don’t know what you’ve got till it’s gone.

–

A Redbox kiosk

Enlarge / A Redbox movie rental kiosk stands outside a CVS store.

Since 2004, red DVD rental kiosks posted near entrances of grocery stores and the like tempted shoppers with movie (and until 2019, video game) disc rentals. But the last 24,000 of Redbox’s kiosks are going away, as Redbox’s parent company moved to chapter 7 liquidation bankruptcy this week. The end of Redbox marks another death knell for the DVD industry at a time when volatile streaming services are making physical media appealing again.

Redbox shutting down

Chicken Soup for the Soul Entertainment, which owns Redbox, filed for chapter 11 bankruptcy on June 29. But on Wednesday, Judge Thomas M. Horan of the US Bankruptcy Court for the District of Delaware approved a conversion to chapter 7, signaling the liquidation of business, per Deadline. Redbox’s remaining 24,000 kiosks will close, and 1,000 workers will be laid off (severance and back pay eligibility are under review, and a bankruptcy trustee will investigate if trust funds intended for employees were misappropriated).

Chicken Soup bought Redbox for $375 million in 2022 and is $970 million in debt. It will also be shuttering its Redbox, Crackle, and Popcornflix streaming services.

DVDs in decline

As a DVD-centric business, Redbox was living on borrowed time. The convenience of on-demand streaming made it hard to compete, and bankruptcy proceedings revealed that Redbox was paying employees more than it was earning.

Overall, the past year hasn’t been a good one for DVD or Blu-ray devotees, as many businesses announced that they’re exiting the industry. In August, Netflix quit its original business of mailing out rental DVDs. Now the king of streaming, the remaining DVD business was so menial that Netflix gave away DVDs as it shut down operations.

Once industry disruptors, DVDs and Blu-rays have been further ushered out the door in 2024. In April, Target confirmed that it will only sell DVDs in stores during “key times,” like the winter holiday season or the release of a newer movie to DVD. The news hit especially hard considering Best Buy ended DVD and Blu-ray sales in-store and online this year. Disney is outsourcing its DVD and Blu-ray business to Sony, and Sony this month revealed plans to stop selling recordable Blu-rays to consumers (it hasn’t decided when yet).

Bad timing

It’s sensible for businesses to shift from physical media sales. Per CNBC’s calculations, DVD sales fell over 86 percent between 2008 and 2019. Research from the Motion Picture Association in 2021 found that physical media represented 8 percent of the home/mobile entertainment market in the US, falling behind digital (80 percent) and theatrical (12 percent).

But as physical media gets less lucrative and the shuttering of businesses makes optical discs harder to find, the streaming services that largely replaced them are getting aggravating and unreliable. And with the streaming industry becoming more competitive and profit-hungry than ever, you never know if the movie/show that most attracted you to a streaming service will still be available when you finally get a chance to sit down and watch. Even paid-for online libraries that were marketed as available “forever” have been ripped away from customers.

When someone buys or rents a DVD, they know exactly what content they’re paying for and for how long they’ll have it (assuming they take care of the physical media). They can also watch the content if the Internet goes out and be certain that they’re getting uncompressed 4K resolution. DVD viewers are also less likely to be bombarded with ads whenever they pause and can get around an ad-riddled smart TV home screen (nothing’s perfect; some DVDs have unskippable commercials).

Streaming isn’t likely to stabilize any time soon, either. Team-ups between streaming providers and merger/acquisition activity make the future of streaming and the quality of available services uncertain. For example, what’s ahead for Paramount+ and Pluto now that Paramount is planning a Skydance merger?

There’s also something to be said about how limiting reliance on streaming can be for movie buffs and people with unique tastes. Treasured content, like older movies or canceled TV shows, isn’t always put on streaming services. And what is put on streaming is sometimes altered, including with new music and controversial scenes/episodes or embarrassing moments at live events removed.

A DVD company like Redbox closing was years in the making. There are people who believe it’s prudent to maintain a physical media library, but renting one is even more niche. Still, places that offer DVDs have gotten significantly rarer recently, and relying solely on an increasingly cable-like streaming industry for home entertainment is a scary proposition. Seeing an alternative option in the form of a red, slender box outside my grocery store actually sounds nice right now.

DVDs are dying right as streaming has made them appealing again Read More »

bleeding-subscribers,-cable-companies-force-their-way-into-streaming

Bleeding subscribers, cable companies force their way into streaming

Charter, Comcast, peacock, streaming, Tech / /

Enter NOW TV Latino —

Companies like Charter brought about the streaming industry they now want to join.

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A person's hand aiming a cable TV remote control at a TV screen

Getty Images | stefanamer

It’s clear that streaming services are the present and future of video distribution. But that doesn’t mean that cable companies are ready to give up on your monthly dollars.

A sign of this is Comcast, the US’ second-biggest cable company, debuting a new streaming service today. Comcast already had an offering that let subscribers stream its Xfinity cable live channels and access some titles on demand. NOW TV Latino differs in being a separate, additional streaming service that people can subscribe to independently of Xfinity cable for $10 per month.

However, unlike streaming services like Netflix or Max, you can only subscribe to NOW TV Latino if Xfinity is sold in your area. NOW TV Latino subscriptions include the ability to stream live TV from Spanish-language channels that Xfinity offers, like Sony Cine and ViendoMovies. And because Comcast owns NBCUniversal, people who subscribe to NOW TV Latino get a free subscription to Peacock with commercials, which usually costs $6/month.

From cable to streaming

In addition to NOW TV Latino, recent Comcast efforts to stay relevant in a TV and movie distribution world dominated by online streaming has centered on bundling. As streaming giants like Netflix struggle with customer churn, bundling is the current favored tactic to keep customers subscribed for longer.

Comcast is selling NOW TV Latino as a separate service, but it’s truly a Peacock bundle. The cable giant is also selling the streaming service bundled with its cable service or with its recently released streaming bundle that combines Comcast’s Peacock with Netflix, Apple TV+, and ads for $15/month.

While popular for streaming service providers, cable companies were some of the pioneers of the bundling strategy, which can overwhelm customers with confusing rates and services that some may not need. As Comcast CEO Brian Roberts said in May while announcing the aforementioned Peacock/Netflix/AppleTV+ bundle: “We’ve been bundling video successfully and creatively for 60 years, and so this is the latest iteration of that.”

Bleeding customers

The cable industry has been in a nose-dive for years. Comcast’s Q1 2024 earnings report showed its cable business losing 487,000 subscribers. The cable giant ended 2022 with 16,142,000 subscribers; in January, it had 13,600,000.

Charter, the only US cable company bigger than Comcast, is rapidly losing pay-TV subscribers, too. In its Q1 2024 earnings report, Charter reported losing 405,000 subscribers, including business accounts. It ended 2022 with 15,147,000 subscribers; at the end of March, it had 13,717,000.

And, like Comcast, Charter is looking to streaming bundles to keep its pay-TV business alive and to compete with the likes of YouTube TV and Hulu With Live TV.

In April, Charter also announced a Spanish language-focused streaming service, but in traditional cable fashion, one must subscribe to Charter’s Spectrum Internet to be able to subscribe (TV Stream Latino is $25/month). Charter also sells the ability to stream live TV from some of the channels that its cable service has.

In 2022, Charter and Comcast formed a joint venture, Xumo, that focuses on streaming but includes cable industry spins, like set-top boxes. The companies are even trying to get a piece of the money made from smart TV operating systems (OSes), with budget brands such as Hisense now selling TVs with Xumo OS.

It’s a curious time, as cable TV providers scramble to be part of an industry created in reaction to business practices that many customers viewed as anti-consumer. Meanwhile, the streaming industry is adopting some of these same practices, like commercials and incessant price hikes, to establish profitability. And some smaller streaming players say it’s nearly impossible to compete as the streaming industry’s top players are taking form and, in some cases, collaborating.

But after decades of discouraging many subscribers with few alternatives, it will be hard for former or current cable customers to view firms like Comcast and Charter as trustworthy competitive streaming providers.

Bleeding subscribers, cable companies force their way into streaming Read More »

canada-demands-5%-of-revenue-from-netflix,-spotify,-and-other-streamers

Canada demands 5% of revenue from Netflix, Spotify, and other streamers

netflix, Policy, streaming / /

Streaming fees —

Canada says $200M in annual fees will support local news and other content.

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Illustrative photo featuring Canadian 1-cent coins with the Canadian flag displayed on a computer screen in the background,

Getty Images | NurPhoto /

Canada has ordered large online streaming services to pay 5 percent of their Canadian revenue to the government in a program expected to raise $200 million per year to support local news and other home-grown content. The Canadian Radio-television and Telecommunications Commission (CRTC) announced its decision yesterday after a public comment period.

“Based on the public record, the CRTC is requiring online streaming services to contribute 5 percent of their Canadian revenues to support the Canadian broadcasting system. These obligations will start in the 2024–2025 broadcast year and will provide an estimated $200 million per year in new funding,” the regulator said.

The fees apply to both video and music streaming services. The CRTC imposed the rules despite opposition from Amazon, Apple, Disney, Google, Netflix, Paramount, and Spotify.

The new fees are scheduled to take effect in September and apply to online streaming services that make at least $25 million a year in Canada. The regulations exclude revenue from audiobooks, podcasts, video game services, and user-generated content. The exclusion of revenue from user-generated content is a win for Google’s YouTube.

Streaming companies have recently been raising prices charged to consumers, and the CBC notes that streamers might raise prices again to offset the fees charged in Canada.

Fees to support local news, Indigenous content

The CRTC said it is relying on authority from the Online Streaming Act, which was approved by Canada’s parliament in 2023. The new fees are similar to the ones already imposed on licensed broadcasters.

“The funding will be directed to areas of immediate need in the Canadian broadcasting system, such as local news on radio and television, French-language content, Indigenous content, and content created by and for equity-deserving communities, official language minority communities, and Canadians of diverse backgrounds,” the CRTC said.

CRTC Chairperson Vicky Eatrides said the agency’s “decision will help ensure that online streaming services make meaningful contributions to Canadian and Indigenous content.” The agency also said that streaming companies “will have some flexibility to direct parts of their contributions to support Canadian television content directly.”

Industry groups blast CRTC

The Motion Picture Association-Canada criticized the CRTC yesterday, saying the fee ruling “reinforces a decades-old regulatory approach designed for cable companies” and is “discriminatory.” The fees “will make it harder for global streamers to collaborate directly with Canadian creatives and invest in world-class storytelling made in Canada for audiences here and around the world,” the lobby group said.

The MPA-Canada said the CRTC didn’t fully consider “the significant contributions streamers make in working directly with Canada’s creative communities.” The group represents streamers including Netflix, Disney Plus, HAYU, Sony’s Crunchyroll, Paramount Plus, and PlutoTV.

“Global studios and streaming services have spent over $6.7 billion annually producing quality content in Canada for local and international audiences and invested more in the content made by Canadian production companies last year than the CBC, or the Canada Media Fund and Telefilm combined,” the group said.

The fees were also criticized by the Digital Media Association, which represents streaming music providers including Amazon Music, Apple Music, and Spotify. The “discriminatory tax on music streaming services… is effectively a protectionist subsidy for radio” and may worsen “Canada’s affordability crisis,” the group said.

The Canadian Media Producers Association praised the CRTC decision, saying the decision benefits independent producers and “tilts our industry toward a more level playing field.”

Canada demands 5% of revenue from Netflix, Spotify, and other streamers Read More »

spotify-raising-prices-by-up-to-$3-as-frustrated-subs-beg-it-to-“just-do-music”

Spotify raising prices by up to $3 as frustrated subs beg it to “just do music”

Spotify, streaming, Tech / /

As high as $20/month —

Spotify last raised prices in July 2023.

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Spotify raising prices by up to $3 as frustrated subs beg it to “just do music”

After keeping Spotify Premium subscription pricing flat since debuting it in 2011, Spotify increased monthly pricing in July 2023 and will do so again in July 2024, it announced today.

Individual monthly subscriptions will increase from $11 per month to $12/month. Family plans, which support up to six members, will go from $17/month to $20/month. Duo plans, for two accounts, are rising from $15/month to $17/month. Spotify didn’t announce pricing changes for its Student ($6/month) or free plans.

Spotify said it’s increasing prices so that it can “continue to invest in and innovate on our product features and bring users the best experience.”

It said it would email subscribers directly “over the next month” about the changes. The message that Spotify said it will send to subscribers will include a link to the account page, where subscribers can cancel their subscription if desired, as well as the support site for asking questions.

“Just do music”

Spotify went 12 years without changing subscription prices, but now it’s doing it for a second time in about a year.

In July 2023, monthly pricing for Spotify’s Premium plan for individual users went from $10 to $11. Duo pricing went from $13 to $15, and the Family and Student plans also each increased by $1 per month. However, these sweeping pricing changes occurred at a time when rivals, like Tidal, were making similar changes. And as Spotify’s first price hike ever, it seemed more digestible.

The second price hike comes as Spotify seeks its first year of profitability. These efforts have included attempts to diversify revenue by expanding from Spotify’s traditional music-streaming service to include things like podcasts, which Spotify has reportedly invested over $1 billion in, and audiobooks, a newer business for Spotify that it fueled with a $123 million Findaway acquisition. Meanwhile, Spotify has been working on adding high-fidelity audio to its service since 2021.

Some subscribers would rather see predictable pricing than new endeavors. For example, a reported user going by “ccolburn” on Spotify’s online forum reacted to this news with a post titled, “I only want music only! Stop increasing the prices to justify adding things I don’t want!“:

I DONT want podcast in my music app. … I dont want audio books when I want music. I also dont wanna pay more for the same service. JUST DO MUSIC!!!! [sic]

Apparent subscribers have shared similar sentiments elsewhere online, like on Reddit, where “crazytalk151” recently wrote:

Can you just do music and stop with all the other crap? No I dont want your shit podcasts or audio books. Just music and the same price. Whats the best alternative? [sic]

A tightrope

But like with many subscription price hikes among streaming services, Spotify’s growing prices are tied to profitability goals. Despite having profitable quarters, the 18-year-old company hasn’t reported a profitable year.

In its Q1 2024 earnings report shared on April 23, Spotify recorded its highest quarterly profit ever, at 1 billion euros (about $1.08 billion). The company noted price increases helping to boost the average revenue it sees per user. However, Spotify’s total monthly active users fell 3 million short of its 618 million user goal. The report also followed about 1,500 layoffs in December 2023.

During Spotify’s Q1 2024 earnings call, Spotify CEO and co-founder Daniel Ek called 2024 Spotify’s “year of monetization” and said the company would focus on “strong revenue growth and margin expansion” via “ambitious plans.” Ek didn’t announce price changes at the time but noted that Spotify often reviews its “value-to-price” ratio in relation to subscription prices, as Variety reported at the time.

Spotify stock opened 5.5 percent higher on news of subscription prices rising, The Wall Street Journal reported today. However, subscribers, who are generally getting increasingly fed up with ever-rising subscription prices, will likely be less impressed by the news.

The announcement of price changes follows Spotify’s recent decision this December to brick its Car Thing hardware after releasing it to the general public in February 2022. Spotify has given some users refunds if they can provide proof of purchase. However, some users online have reported problems with getting refunds due to things like the devices being linked to a third-party or unknown account, people owning multiple devices, or people reportedly being offered Spotify Premium credits initially instead. Spotify has previously declined to specify to Ars Technica the exact criteria required for receiving a full refund on Car Thing.

As Spotify tries to push toward profitability by raising prices and adding new endeavors and by distancing itself from old ones, it walks a tightrope in maintaining the type of customer satisfaction and trust that’ll keep people subscribing.

Spotify raising prices by up to $3 as frustrated subs beg it to “just do music” Read More »

cable-tv-providers-ruined-cable—now-they’re-coming-for-streaming

Cable TV providers ruined cable—now they’re coming for streaming

Apple TV Plus, cable, Comcast, netflix, peacock, streaming, Tech / /

Cable 2.0 —

Comcast wants to tie its cable/Internet to your streaming subscriptions.

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Cable TV providers ruined cable—now they’re coming for streaming

In an ironic twist, cable TV and Internet provider Comcast has announced that it, too, will sell a bundle of video-streaming services for a discounted price. The announcement comes as Comcast has been rapidly losing cable TV subscribers to streaming services and seeks to bring the same type of bundling that originally drew people away from cable to streaming.

Starting on an unspecified date this month, the bundle, called Streamsaver, will offer Peacock, which Comcast owns, Apple TV+, and Netflix to people who subscribe to Comcast’s cable TV and/or broadband. Comcast already offers Netflix or Apple TV+ as add-ons to its cable TV, but Streamsaver expands Comcast’s streaming-related bundling efforts.

Comcast didn’t say how much the streaming bundle would cost, but CEO Brian Roberts said that it will “come at a vastly reduced price to anything in the market today” when announcing the bundle on Tuesday at MoffettNathanson’s 2024 Media, Internet and Communications Conference in New York, per Variety. If we factor in Peacock’s upcoming price hike, subscribing to Apple TV+, Netflix, and Peacock separately would cost $39.47 per month without ads, or $24.97/month with ads.

According to Roberts, Comcast is hoping that the upcoming package will help Comcast “add value to consumers” and “take some of the dollars out of” other streaming businesses.

For subscribers, the more immediate effect is the continuing and rapid blurring of the lines between cable and streaming services. And Comcast knows that.

As Roberts notes: “We’ve been bundling video successfully and creatively for 60 years, and so this is the latest iteration of that.”

Comcast is hemorrhaging subscribers

Last month, Comcast said it lost 487,000 cable TV subscribers in Q1 2024. It ended the quarter with 13,600,000 subscribers, compared to 14,106,000 at the end of 2023 and 16,142,000 at the end of 2022.

Comcast’s broadband subscriber base also decreased from 32,253,000 at the end of 2023 to 32,188,000.

Peacock, Comcast’s flagship streaming service, hasn’t made any money since launching in 2020 and lost $2.7 billion in 2023. However, in April, Comcast said that Peacock’s Q1 losses lessened from $704 million in Q1 2023 to $639 million in Q1 2024.

It’s worth noting that in January, Comcast raised prices for its cable and Internet services by 3 percent, blaming the price hikes on broadband investments and an increase in programming costs.

Déjà vu

One of the common reasons people abandoned cable TV were bundled packages that forced people to pay for services, like phone or Internet, or channels that they didn’t want. Now, Comcast is looking to save its shrinking subscriber base by bundling its cable TV or Internet service with some of its biggest competitors. Like streaming services, Comcast is hoping that bundling its products will deter people from canceling their subscriptions since they’re tied to each other.

Subscriber churn is also a problem in the streaming industry. Antenna, a subscription analyst company, estimates that around 25 percent of video-streaming subscribers in the US have canceled at least three such subscriptions in the last two years. These high-churn subscribers represent around 40 percent of new subscriptions and cancellations last year, Antenna told The New York Times in April.

But Comcast’s announcement hints at déjà vu as Comcast blatantly seeks to re-create the cable bundle or triple-play package using the very streaming services that are eating away at Comcast’s cable business. Ironically, Comcast is seeking to bandage a declining business by feeding some of the biggest contributors to that decline, using the same tactics that drove many customers away in the first place.

We’re expected to hear a lot more about bundled services. Last month, we learned that a Disney+, Hulu, and Max bundle would be released this summer, for example. And there’s already a lengthy list of streaming bundle packages available from third parties like Verizon and T-Mobile.

But for people who left cable to avoid overloaded bundled packages and to get away from companies like Comcast, which group cable TV or Internet with streaming services that often raise prices, limit show and movie availability and features, and increasingly focus on ads, it just isn’t worth the monthly savings.

Cable TV providers ruined cable—now they’re coming for streaming Read More »

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Prime Video subs will soon see ads for Amazon products when they hit pause

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Amazon’s ad affinity —

Amazon is adding three types of shoppable ads to Prime Video’s ad tier.

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A scene from the Prime Video original series <em>Fallout</em>.” src=”https://cdn.arstechnica.net/wp-content/uploads/2024/05/fallout-800×334.jpg”></img><figcaption> <p><a data-height=Enlarge / A scene from the Prime Video original series Fallout.

Amazon Prime Video subscribers will see new types of advertisements this broadcast year. Amazon announced today that it’s adding new ad formats to its video streaming service, hoping to encourage people to interact with the ads and shop on Amazon.

In January, Prime Video streams included commercials unless subscribers paid $3 extra per month. That has meant that watching stuff on Prime Video ad-free costs $12 per month or, if you’re also a Prime subscriber, $18 per month.

New types of Prime Video ads

Amazon has heightened focus on streaming ads this year. Those who opted for Prime Video with commercials will soon see shoppable carousel ads, interactive pause ads, and interactive brand trivia ads, as Amazon calls them. Amazon said that advertisers could buy these new displays to be shown “across the vast majority of content on Prime Video, wherever it’s streamed.” All the new ad formats allow a viewer to place advertised products in their Amazon cart.

With carousel ads, subscribers will be pushed to shop “a sliding lineup of” products during ad breaks during shows and movies, Amazon said, adding: “The ad automatically pauses so that customers can browse, and automatically resumes play when ad interaction has stopped.”

The pause ads will be visible during Prime Video TV shows, movies, and live sports. These types of ads have been around since Hulu introduced them in 2019. Since they can show up whenever someone hits the pause button, these displays mean that Prime Video users will see ads beyond their scheduled breaks.

In Prime Video’s case, pausing the program will bring up “a translucent ad featuring brand messaging and imagery, along with an ‘Add to Cart’ and ‘Learn More'” overlay, per Amazon. Advertisers can also use pause ads to acquire voluntary viewers’ email addresses (so viewers can “get more information,” per Amazon).

Amazon trivia-themed ads will also appear during shows, movies, and live sports. The ad will try to sell stuff by offering “rewards like Amazon shopping credits.”

Amazon’s ad business is growing

Amazon is already one of the three biggest digital advertising firms (in addition to Alphabet and Meta). But its interest in using its streaming service to sell ad space has grown as ad dollars continue shifting away from linear, traditional TV platforms. The streaming industry has been trying to capitalize on advertisers’ growing interest with new ad types that users can shop from. Amazon research from 2023 claims that interactive ads increase product page views and conversions for products sold on Amazon tenfold.

On the other hand, Amazon has not released research publicly on how much constant ad viewing can impact the user experience or interest in a streaming service.

Still, Amazon claimed today that Prime Video ads reach an average of 200 million people monthly. Amazon hasn’t provided a firm figure on how many Prime Video subscribers it currently has overall, however. In 2021, Amazon said that Prime, which includes Prime Video, had 200 million subscribers.

Amazon has, however, boasted about how well it is selling ads recently. In its Q1 2024 earnings report released on April 30, Amazon said its ad business grew 24 percent year over year. Most of Amazon’s ad dollars come from its retail business, as The Hollywood Reporter noted, but in a statement at the time, Amazon CEO and President Andy Jassy noted that Prime Video was also a contributor.

According to a Hub Media Entertainment survey from January to March 2024, 6,338 US TV viewers between 16 to 74 years old watched at least one hour of TV per week, and 85 percent of Prime Video subscribers in the survey are on Amazon’s ad tier. (Amazon hasn’t confirmed those figures.) The Hub Entertainment Media survey claims that Amazon has a higher ad-based-to-ad-free ratio of subscribers than all other video-streaming services examined, including Netflix, Max, and Hulu. But it’s worth noting that Amazon automatically moved all Prime Video subscribers to its ad tier in January, while others, like Netflix, introduced ad tiers as a new option to sign up for.

A fine line

Like all streamers, Amazon is toeing a fine line between using ads to boost the average revenue it makes per user and aggravating subscribers to the point of cancellation.

Amazon is already facing a lawsuit regarding ads on Prime Video that seeks class-action certification and was filed by people who purchased annual subscriptions.

Prime Video subs will soon see ads for Amazon products when they hit pause Read More »

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All the ways streaming services are aggravating their subscribers this week

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Streaming services like Netflix and Peacock have already found multiple ways to aggravate paying subscribers this week.

The streaming industry has been heating up. As media giants rush to establish a successful video streaming business, they often make platform changes that test subscribers’ patience and the value of streaming.

Below is a look at the most exasperating news from streaming services from this week. The scale of this article demonstrates how fast and frequently disappointing streaming news arises. Coincidentally, as we wrote this article, another price hike was announced.

We’ll also examine each streaming platform’s financial status to get an idea of what these companies are thinking (spoiler: They’re thinking about money).

Peacock’s raising prices

For the second time in the past year, NBCUniversal is bumping the price of Peacock, per The Hollywood Reporter (THR) on Monday.

As of July 18, if you try to sign up for Peacock Premium (which has ads), it’ll cost $7.99 per month, up from $5.99/month today. Premium Plus, (which doesn’t have ads), will go up from $11.99/month to $13.99/month. Annual subscription pricing for the ad plan is increasing 33.3 percent from $59.99 to $79.99, and the ad-free annual plan’s price will rise 16.7 percent from $119.99/year to $139.99/year.

Those already subscribed to Peacock won’t see the changes until August 17, six days after the closing ceremony of the 2024 Summer Olympics, which will stream on Peacock.

The pricing changes will begin eight days before the Olympics’ opening ceremony. That means that in the days leading up to the sporting event, signing up for Peacock will cost more than ever. That said, there’s still time to sign up Peacock for its current pricing.

As noted by THR, the changes come as NBCUniversal may feel more confident about its streaming service, which now includes big-ticket items, like exclusive NFL games and Oppenheimer (which Peacock streamed exclusively for a time), in addition to new features for the Olympics, like multiview.

Some outspoken subscribers, though, aren’t placated.

“Just when I was starting to like the service,” Reddit user MarkB1997 said in response to the news. “I’ll echo what everyone has been saying for a while now, but these services are pricing themselves out of the market.”

Peacock subscribers already experienced a price increase on August 17, 2023. At the time, Peacock’s Premium pricing went from $4.99/month to $5.99/month, and the Premium Plus tier from $9.99/month to $11.99/month.

Peacock’s pockets

Peacock’s price bumps appear to be a way for the younger streaming service to inch closer to profitability amid a major, quadrennial, global event.

NBCUniversal parent company Comcast released its Q1 2024 earnings report last week, showing that Peacock, which launched in July 2020, remains unprofitable. For the quarter, Peacock lost $639 million, compared to $825 million in Q4 2023 and $704 million in Q1 2023. Losses were largely attributed to higher programming costs.

Peacock’s paid subscriber count is lower than some of its rivals. The platform ended the quarter with 34 million paid users, up from 31 million at the end of 2023. Revenue also rose, with the platform pulling in $1.1 billion, representing a 54 percent boost compared to the prior year.

Sony bumps Crunchyroll prices weeks after shuttering Funimation

Today, Sony’s anime streaming service Crunchyroll announced that it’s increasing subscription prices as follows:

  • The Mega Fan Tier, which allows streaming on up to four devices simultaneously, will go from $9.99/month to $11.99/month
  • The Ultimate Fan Tier, which allows streaming on up to six devices simultaneously, will go from $14.99/month to $15.99/month

Crunchyroll’s cheapest plan ($7.99/month) remains unchanged. None of Crunchyroll’s subscription plans have ads. Crunchyroll’s also adding discounts to its store for each subscription tier, but this is no solace for those who don’t shop there on a monthly basis or at all.

The news of higher prices comes about a month after Sony shuttered Funimation, an anime streaming service it acquired in 2017. After buying Crunchyroll in 2021, Funimation was somewhat redundant for Sony. And now that Sony has converted all remaining Funimation accounts into Crunchyroll accounts (while deleting Funimation digital libraries), it’s forcing many customers to pay more to watch their favorite anime.

A user going by BioMountain on Crunchyroll said the news is “not great,” since they weren’t “a big fan of having to switch from Funimation to begin with, especially since that app was so much better” than Crunchyroll.

Interestingly, when Anime News Network asked on February 29 whether Crunchyroll would see prices rise over the next two years, the company told the publication that predicting a price change for that time frame would be improbable.

Crunching numbers

Crunchyroll had 5 million paid subscribers in 2021 but touted over 13 million in January, (plus over 89 million unpaid users, per Bloomberg). Crunchyroll president Rahul Purini has said that Crunchyroll is profitable, but not by how much.

In 2023, Goldman Sachs estimated that Crunchyroll would represent 36 percent of Sony Pictures Entertainment’s profit by 2028, compared to about 1 percent in March.

However, Purini has shown interest in growing the company further and noted to Variety in February an increase in “general entertainment” companies getting into anime.

Still, anime remains a more niche entertainment category, and Crunchyroll is more specialized than some other streaming platforms. With Sony making it so that anime fans have one less streaming service option and jacking up the prices for one of the limited options, it’s showing that it wants as much of the $20 billion anime market as possible.

Crunchyroll claimed today that its pricing changes are tied to “investment in more anime, additional services like music and games, and additional subscriber benefits.”

All the ways streaming services are aggravating their subscribers this week Read More »

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Roku OS home screen is getting video ads for the first time

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the price of cheap streaming —

Meanwhile, Roku keeps making more money.

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roku home screen

Roku

Roku CEO Anthony Wood disclosed plans to introduce video ads to the Roku OS home screen. The news highlights Roku’s growing focus on advertising and an alarming trend in the streaming industry that sees ads increasingly forced on viewers.

As spotted by The Streamable, during Roku’s Q1 2024 earnings call last week, Wood, also the company’s founder and chairman, boasted about the Roku OS home screen showing users ads “before they select an app,” avoiding the possibility that they don’t see any ads during their TV-viewing session. (The user might only use Roku to access a video streaming app for which they have an ad-free subscription.)

Wood also noted future plans to make the Roku home screen even more ad-laden:

On the home screen today, there’s the premier video app we call the marquee ad and that ad traditionally has been a static ad. We’re going to add video to that ad. So that’ll be the first video ad that we add to the home screen. That will be a big change for us.

Wood’s comments didn’t address the expected impact on the Roku user experience or whether the company thinks this might turn people off its platform. In December, Amazon made a similar move by adding autoplay video ads to the home screen of the Fire OS (which third-party TVs and Amazon-branded Fire TV sets and streaming devices use). Fire OS users who disable the ads’ autoplay function will still see ads as “a full-screen slide show of image ads,” per AFTVnews. Some users viewed the introduction as an intrusive step that went too far, and Roku may hear the same feedback.

During Roku’s earnings call, Wood also said the company is testing “other types of video ad units” and is looking for more ways to bring advertising to the Roku OS home screen.

This comes after recent efforts to expand ad presence on Roku OS, including through new FAST (free ad-supported streaming TV) channels and by putting content recommendations on the home screen for the first time, per Wood, who said the personalized content row “will be, obviously, AI-driven recommendations.”

“There’s lots of ways we’re working on enhancing the home screen to make it more valuable to viewers but also increase the monetization on the home screen,” he said.

Roku’s revenue rise

Roku saw its average revenue per user (ARPU) drop from $41.03 in Q3 of its 2023 financial year to $39.92 in Q4 2023 (in Q4 2022, the company reported an ARPU of $41.68). Last week, Roku reported that ARPU, a key metric for the streaming industry these days, rose to $40.65 in Q1 2024. Meanwhile, Roku’s active account count rose by 1.6 million users from the prior quarter to 81.6 million.

“Roku has a direct relationship with more than 81 million Streaming Households, and we are deepening relationships with third-party platforms, including [demand side platforms], retail media networks, and measurement partners. Our business remains well positioned to capture the billions of dollars in traditional TV ad budgets that will shift to streaming,” an April 25 letter to shareholders [PDF] authored by Wood and Roku CFO Dan Jedda reads.

Like many streaming companies, a shift toward ads has resulted in higher revenue potential and user discontent. In its Q1 2024 results, Roku reported that revenue for its Devices business reached $126.5 million, compared to $754.9 for its Platform business, which drives most of its revenue through ad sales, representing a 19 percent year-over-year (YoY) increase. Overall, revenue rose 19 percent YoY to $882 million, and Roku’s gross profit grew 15 percent YoY to $388 million.

But growing revenue doesn’t equate to an improved user experience. For example, an Accenture survey of 6,000 “global consumers” noted by The Streamable found that 52.2 percent of participants thought that streaming platform-recommended content “did not match their interests.” Similarly, an October TiVo survey of 4,500 viewers in the US and Canada ranked “streaming apps / home screen / carousel ads” as the fourth most popular method of content discovery, after word of mouth, commercials aired during other shows, and social media. While Roku is a budget brand associated with more affordable TVs and streaming devices, excessive ads could make people reconsider the true price of these savings.

Despite people’s ad aversion, Roku intends to find more ways to drive advertising opportunities. Among those ideas being explored is the ability to show ads over anything plugged into the TV.

Roku OS home screen is getting video ads for the first time Read More »