Streaming's new economics

Driving the news: YouTube TV, the live-TV streaming bundle, will raise prices by $10 a month starting in January, bringing it up to $82.99.

• The price bump is the latest in what's becoming an annual occurrence for streaming services, as Wall Street investors have pressured media giants to make streaming profitable.
• YouTube TV's price now rivals what a traditional cable package costs, per industry trade group CTAM.

The big picture: Streaming gained a foothold in the early 2010s because it was far less expensive — and far easier to sign up and cancel — than cable and satellite TV.

• That's no longer the case, as the cost of programming — and particularly live sports — has gone up.
• That's forced streamers, which are increasingly focused on using live sports to attract new subscribers, to raise their prices.

Reality check: The price increases are masking something that most consumers probably take for granted: The amount of content that is accessible is far greater compared to the cable-dominated past.

• Netflix alone had more than 18,000 shows and movies available globally last year. Those who signed up for the bundle with Disney+, Hulu and Max gain access to a similar amount.

• There are also more nationally available sports games than ever before: The NFL has at least three national TV games each week, and has added early-morning windows for international games and held contests on Black Friday and Christmas Day.
• The NBA's next media deal, which tips off next fall, will include as many as five nights of national TV hoops each week.

The bottom line: As the price advantage evaporates, streamers are now asking consumers to buy a broader pitch for cord-cutting.