Summary
- Starz has lowered the price of its annual subscription plan from $74.99 to $69.99 at a time when many other streamers are raising prices.
- Starz President of Domestic Networks Alison Hoffman said that the change is possible because Starz is one of the few profitable streaming services, with the move designed to reward existing customers while attracting new ones.
- Some prices are going up because streaming services have now shifted away from a scale model – attempting to grow subscriber bases no matter the cost – and more towards cost-cutting and revenue growth.
As the age of streaming service price hikes continues, Starz has just instituted a surprising price reduction. Best known as the network responsible for Outlander, Party Down, and Black Sails, among others, Starz is one of many streaming service options currently available to consumers. Many consumers will have noticed changes to the streaming landscape recently, with companies introducing price hikes amid changing business strategies.
Now, per IndieWire, Starz has actually just lowered the price of its annual subscription from $74.99 to $69.99. Emails have been sent out to existing subscribers about the change, which will be reflected in their next billing cycles. Commenting on the surprising move, Starz President of Domestic Networks Alison Hoffman told IndieWire the following:
“As one of the few streaming networks that is profitable, we are always looking for ways to drive success for the business while providing great value to our customers. Our annual plan subscribers are some of our most valuable customers, so we wanted to find ways to drive more people into the plan and reward our existing customers.”
Why So Many Streaming Services Are Raising Prices
In 2023, a number of popular streaming services have raised their prices. Disney increased prices in December of last year, but just recently announced that another hike is on the way. Disney Plus s the likes of HBO Max, Paramount Plus, Shudder, and Peacock. Even Starz increased the price of its monthly subscription plan earlier this summer.
The increases are the result of a larger shift in mindset among those in power in the streaming industry. During the streaming boom of the 2010s, it seemed like just about every major entertainment company needed its own streaming service. Under the old approach, scale was seen as the best path toward profitability, with companies investing billions into growing their subscriber bases.
Now, however, many companies aren't seeing the expected returns from their unchecked content spending, with profitability a luxury that few streaming services actually enjoy. With a slowdown in subscriber growth, streaming services like Disney Plus, Paramount Plus, and more are increasing subscription prices in an effort to increase revenue. These price increases are accompanying other strategies like scrapping already-filmed TV shows and movies for tax breaks, and licensing content out to FAST services. While the Starz price drop isn't much, it's still a surprising move in the current streaming landscape.
Source: IndieWire
