Streaming Now A Required Profit Center

HBO Max has raised its standard subscription price by $1.50 to $18.49 monthly—a 23% increase since its 2020 pandemic launch—as all major U.S. streaming services except Paramount+ and Amazon Prime Video hiked rates this year, pushing the average cost of the top 10 paid platforms up 12% in 2025.

The increases, driven by inflation, rising programming costs, and pressure to offset declining legacy pay-TV revenue, mark the fourth straight year of double-digit percentage jumps, according to Convergence Research Group in Victoria, British Columbia. 

The LA Times reports the firm’s data covers ad-supported and ad-free plans for services like Netflix, Disney+, Hulu, Peacock, and Apple TV+, excluding bundles.

Industry experts warn the strategy risks backlash. “The industry is playing a dangerous game by continuing to raise prices,” said Andrew Hare, senior vice president at media consultancy Magid. “We’re nearing a boiling point of rising churn and overwhelming choice.” Magid reported 24% of consumers plan to cancel at least one service in the next six months, up from 19% a year ago.

Once positioned as cheaper cable alternatives, streaming platforms now operate under intense profitability demands. “The rest of their businesses have effectively been under attack by streaming and so they need this area to be profitable,” said Brahm Eiley, president of Convergence Research Group.Streaming has shifted from loss-leader status to a required profit center, added Tim Hanlon, CEO of Vertere Group LLC. 

“There’s no question that streaming is now under the gun,” he said. “HBO Max’s hike reflects broader economic pressures on media companies,” Eiley noted, as viewership shifts erode traditional revenue streams. Hare added: “Hard as it is to imagine, the cable bundle is starting to look like a better value all the time.”