Netflix, Disney, Spotify & Co.: Rising prices and less content

Netflix, Disney and Co. are demanding more and more money from their subscribers. Prices could rise even further, but at the same time customers have to worry about being offered less content. Music streaming is also becoming more expensive – for good reason.

Vor about four years ago, Walt Disney was preparing to become the biggest threat to Netflix to date. The American entertainment company launched its streaming service Disney+ and did so in the certainty that it would have access to a huge pool of content – from animated classics to superhero films from its Marvel division and the “Star Wars” series. He undoubtedly had reason to be confident that he could challenge Netflix on the strength of its slate of films and television shows. And yet, to the surprise of some observers, he decided to enter the market with a predatory pricing strategy. He charged $6.99 a month for Disney+ in the USA, significantly undercutting Netflix. This helped him enormously in attracting customers; he quickly built up a large number of subscribers. But the rapid growth came at a high price; Since the introduction of Disney+, the company has reported losses of more than ten billion dollars with its various streaming services.

The high losses were seen as a major reason why Disney changed its leadership around a year ago and brought former CEO Bob Iger back to the top. In order to make the business profitable, the company is now increasing prices significantly. In its home market, it has increased the price of the regular subscription twice in less than a year, most recently to $13.99 a month in October. In Germany, the prices were also adjusted in November; the previous standard subscription of 8.99 euros was transformed into a premium version for 11.99 euros.