Ditched Cable for Netflix, Now Netflix Costs as Much as Cable — Viewers Flee to Free Streaming
Consumers who once cut the cord on cable TV and migrated to streaming are now cutting ties with paid streaming services altogether. Exhausted by successive price hikes from major platforms, viewers are flocking en masse to free ad-supported streaming TV (FAST) — a phenomenon now being called "Re-Cord Cutting."
According to a recent analysis by U.S. media outlet Axios, the lowest-priced ad-free tiers of major streaming services have increased by an average of $6.69 since launch. Industry insiders are calling this trend "Streaming Inflation."
The streaming services that once emerged as alternatives to cable TV — heralding the "cord cutting" era — have now become the very culprits squeezing consumers' wallets. The promise of the mid-2010s — "cut the cord and save money" — has faded into an empty slogan.
Disney+, Netflix, Hulu: The Price Hike Triumvirate
Disney+ leads the pack in price increases. When the service launched in November 2019 as a latecomer to the streaming market, it debuted at an aggressive $6.99. Today, its lowest ad-free tier costs $18.99 — a roughly 172% increase, nearly tripling the original price.
Disney+'s initial low-price strategy was a deliberate move to capture market share. Armed with powerful intellectual properties including Marvel, Star Wars, and Pixar, the company rapidly amassed over 100 million subscribers before entering an aggressive monetization phase. As Wall Street pressure for profitability intensified, the pivot from "growth over profits" to "profits over growth" was directly reflected in the price tag.
Netflix and Hulu have been similarly aggressive, with both services raising their lowest ad-free tiers by $9 each since launch. Netflix, as the streaming market leader, has consistently increased prices over the years. The company's streaming-only plan debuted at $7.99 in 2011; its standard tier now costs $17.