If you’ve been using streaming services for videos or video games, you may have noticed a rise in prices — also known as “streamflation” — on your credit card statements.
While overall monthly inflation was only 0.3% in December, the category of “subscription and rental of video and video games” saw a significant 19.5% price increase, according to the Bureau of Labor Statistics.
Why streaming prices are outpacing inflation
The increase in costs is partially due to the evolution of the streaming industry, as explained by Paul Erickson, principal media and entertainment analyst for Omdia, a tech research and advisory group.
During the pandemic, Erickson notes that streaming companies focused on growing their subscriber base above all else. Now that streaming audiences have stabilized, companies are feeling more pressure to be profitable and sustainable.
“We are striving for better profitability and business performance, coupled with the increasing cost of content,” Erickson explains. “Generally, the cost of content continues to rise.”
“The business model simply doesn’t work if you’re only paying $8 a month,” says Dan Rayburn, a streaming media expert and consultant.
Currently, ad-supported streaming typically costs between $8 to $12 per month, while ad-free streaming ranges from $13 to $25 per month, depending on the provider. Prices may vary for bundled services.
Rayburn highlights Paramount as an example, mentioning that the company recently secured a deal to distribute all UFC events in the U.S. Consequently, Paramount+ subscription prices were raised as a result.
“They just spent billions of dollars on this,” Rayburn points out. “They need to find a way to cover these costs.”
Historically, streaming companies have implemented gradual price increases over time to prevent sudden spikes that could alienate consumers, Erickson explains. “To avoid upsetting consumers, you spread out the price adjustments,” he adds.
Will streamflation continue?
Despite a 29% increase in streaming service prices over the 12 months ending in December 2025, Erickson doesn’t believe this will become a regular trend.
“We probably won’t see this pattern persist,” he predicts. “Instead, we can anticipate occasional incremental price hikes.”
If the prices ever become too steep for your liking, you always have the option to downgrade your subscription or cancel it altogether.
“Every single one of these services operates on a month-to-month basis,” Rayburn reassures. “There are no long-term commitments.”