Summer stream-flation
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The cost of most major streaming services has, on average, increased by more than 40% since launch, according to an Axios analysis of the cheapest ad-free tiers.
- Zoom in: Disney+ and Apple TV+ have had the greatest increases, with both services hiking prices more than 100% since they first launched.
Why it matters: The rising costs are forcing more consumers to consider ad-supported plans.
- Streamers are also pushing to bundle their services to retain subscribers and reduce churn.
Driving the news: Warner Bros. Discovery today said it would raise the price of its ad-free tier by $1 to $16.99 monthly, effectively immediately.
- The price hike comes ahead of the premiere of the second season of HBO's "House of the Dragon."
Between the lines: Spotify on Monday also said it's hiking its monthly rates in the U.S. for the second time in a year. Spotify Premium plans will increase by $1 to $11.99. The Premium Family plan will increase by $3 to $19.99 monthly.
- The company raised its prices for the first time since launching in the U.S. last summer.
The big picture: Spotify has leverage to increase prices, given that its service is the least likely to churn subscribers, per Bloomberg. But other services will need to get creative by leaning into bundles.
