As the streaming wars heat up, consumers are going to have to be choosy about which services they subscribe to, or risk racking up steep monthly bills.
Why it matters: Digital streaming was supposed to break up the expensive cable bundle, but now that so many companies are launching their own services, paying for TV could get even more expensive and complicated.
Driving the news: Apple announced Tuesday that it would charge just $4.99 a month for its new streaming service, Apple TV+.
Be smart: According to Mike Bloxham, SVP of global media and entertainment at research consultancy Magid, people are willing to spend around $38 monthly total on streaming services.
Yes, but: Unlike cable contracts, most streaming services allow users to share passwords, or cancel at any time. Because of this, streaming services need to worry about how to retain customers, not just accrue them.
Our thought bubble: The key differentiator for all of these new streaming offerings will be whether the packages are "sticky" enough to keep users coming back after they finish their favorite show or original series. For companies like Apple, even with a low pricing advantage, smaller content libraries will make it harder to attract and retain subscribers.
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