Discovery+ to Raise Subscription Prices by $1 a Month

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The world of streaming, once touted as the affordable alternative to cable, is gradually turning into something just as costly and complex. It’s ironic how this development mirrors the past. As more streaming services hike their prices, it seems that the race for subscribers, no matter the cost, doesn’t always lead to profitability. Discovery+, a platform known for reality shows and documentaries, is not exempt from this trend.

Starting the new year, Discovery+ will increase its monthly subscription charges by one dollar. Currently, the ad-supported plan costs $5.99 and the ad-free plan costs $9.99. The price adjustment takes effect immediately for new subscribers, while existing customers receive a 30-day notice. If you’re not familiar with the platform, it was previously known as Max, a more popular streaming service from parent company Warner Bros. Discovery that shares some content with Discovery+. Despite the price increase, it remains less expensive compared to other streaming services in its niche. However, this move comes as a surprise given the competition in the market.

The collection on Discovery+ consists of reality TV shows, documentary series, and exclusive productions such as “House of Hammer” and “Stanley Tucci: Tasting Italy.” Additionally, popular titles like the “90 Day” series, “Anthony Bourdain: Parts Unknown,” and Guy Fieri’s “Diners, Drive-ins and Dives” can be found here. Although it has a relatively modest subscriber count compared to other streaming services, when discussing viewership numbers alongside Warner Bros. Discovery, it becomes challenging to deny that people find content on Discovery+ worth regularly viewing and binge-watching. Nonetheless, the streaming industry is entering a new phase of digital consumption, one characterized by an increased focus on ad-free subscription plans.

Why Are Streamers Raising Prices? Explained

Over the past while, it appears that streaming services have consistently been increasing their prices, and this trend became particularly noticeable between 2023 and 2024. I believe this move was not solely a reaction to poor investment returns, but rather a strategic decision to cater to the growing preference among American subscribers for ad-supported subscription tiers. In fact, this shift in consumer behavior has been hinted at by Disney CEO Bob Iger during an earnings conference call when he accidentally revealed it. Consequently, services like Disney+, Hulu, and ESPN+ all implemented price hikes to attract more cost-conscious subscribers who are willing to tolerate ads in exchange for a cheaper subscription fee.

The focus isn’t solely on increasing prices, but rather on enticing consumers to opt for the ad-supported version of our streaming service. In the US currently, approximately 60% of new subscribers choose this ad-supported option, known as AVOD. To break it down further, about 37% of US subscribers and 30% of global subscribers are AVOD subscribers at present.

It’s reasonable to assume that similar trends are happening on other streaming services, given Disney’s partnership with Warner Bros. Discovery and their offer of a discounted bundle (with an ad-supported option) for Disney+, Hulu, and Max. Moreover, Disney plans to introduce more bundles in the future, reminiscent of cable packages. This suggests that the evolution of streaming may be heading towards a model resembling traditional cable television.

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2025-01-07 21:31