Insider Intelligence delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions.
In-depth analysis, benchmarks and shorter spotlights on digital trends.
Learn More
Interactive projections with 10k+ metrics on market trends, & consumer behavior.
Learn More
Proprietary data and over 3,000 third-party sources about the most important topics.
Learn More
Industry KPIs
Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce.
Learn More
Client-only email newsletters with analysis and takeaways from the daily news.
Learn More
Analyst Access Program
Exclusive time with the thought leaders who craft our research.
Learn More

About Insider Intelligence

Our goal at Insider Intelligence is to unlock digital opportunities for our clients with the world’s most trusted forecasts, analysis, and benchmarks. Spanning five core coverage areas and dozens of industries, our research on digital transformation is exhaustive.
Our Story
Learn more about our mission and how Insider Intelligence came to be.
Learn More
Rigorous proprietary data vetting strips biases and produces superior insights.
Learn More
Our People
Take a look into our corporate culture and view our open roles.
Join the Team
Contact Us
Speak to a member of our team to learn more about Insider Intelligence.
Contact Us
See our latest press releases, news articles or download our press kit.
Learn More
Advertising & Sponsorship Opportunities
Reach an engaged audience of decision-makers.
Learn More
Browse our upcoming and past events, recent podcasts, and other featured resources.
Learn More
Tune in to eMarketer's daily, weekly, and monthly podcasts.
Learn More

Streamers’ price hikes are part of a larger ARPU battle

The news: Netflix is contemplating a price increase for its ad-free service, according to The Wall Street Journal, with indications that the hike might be implemented a few months after the Hollywood actors strike concludes.

  • This increase is proposed for multiple markets, primarily starting with the US and Canada.

Zoom out: Netflix isn’t alone in this approach; over the past year, the cost of major ad-free streaming platforms has surged by approximately 25% in an effort to improve the bottom line.

  • Disney recently raised prices for Disney+ and Hulu.
  • YouTube nixed its cheapest premium plan recently after upping its YouTube TV pricing earlier in the year.
  • The latest price increase is coming to the ad-free tier of Discovery+, with Warner Bros. Discovery announcing an immediate 30% hike in the US and Canada.

Why it’s happening: Content expenses have been ticking up for some time: Earlier this year, Amazon reported a 28% increase in content costs between 2022 and 2021.

  • The Writers Guild of America's new agreement with the studios will increase costs for studios by $233 million annually—which will increase content costs.

Why it matters: This new dynamic has implications for consumers, advertisers, and platforms alike.

  • The price increases may signal a new normal in streaming, one that inflation-weary consumers may be loath to stomach; 29% of US households are dropping streaming subscriptions due to financial considerations.
  • Meanwhile, advertisers could be forced to adjust their budgets if CPMs trend upward to pay for platforms’ increased content costs.
  • While some platforms may be safe from consolidation, others such as Peacock and Paramount+ may be under particular pressure to balance profitability with user growth.

Deeper dive: Netflix has previously initiated measures to increase user revenues, such as introducing a fee for sharing an account outside one's household. Disney+ is getting in on the password-sharing crackdown act as well.

  • Disney and WBD are also exploring new content tiers, like live sports, to attract subscribers.
  • Companies are also working to enhance the revenue generation of both their ad-free and ad-supported tiers. Case in point: Netflix's focus on halting password sharing effectively acts as a price increase.

Our take: With the increase in prices, streaming platforms might be aiming to shift a portion of their user base to ad-supported plans, which are proving to be more lucrative.

  • According to several sources, ad-supported versions of Disney, Netflix, and WBD streaming platforms are generating higher average revenues per user (ARPU) than their ad-free counterparts.
  • We’re now in an environment where streamers are prioritizing ARPU growth over increasing sheer subscription numbers.
  • While price increases might be a concern for consumers, platforms are likely betting on exclusive content and unique offerings to retain their user base.