Why streaming price hikes aren't scaring off subscribers

Subscription costs across major streaming platforms have surged to new highs in 2025, yet the predicted wave of cancellations hasn’t materialized. Tiered pricing and ad-supported options are giving consumers just enough flexibility to absorb the increases without walking away.

Netflix, Disney+, Hulu, HBO Max, Peacock, Apple TV+, and Paramount+ have all raised prices this year, some more than once. Yet subscription numbers remain steady, with cancellation data showing minimal impact.

Instead of cancelling, households are downgrading to cheaper ad-supported tiers or reshuffling their subscription mix. Roughly half of Netflix viewing hours now come from its ad-supported tier, up from about one-third last August. Similar patterns across platforms suggest price tolerance is higher when alternatives exist.

Streaming platforms have spent billions on NFL, MLB, UFC, MLS, and college sports rights. Peacock defended its latest increase by pointing to new NASCAR, Big 12, and College Football Playoff coverage.

NBCUniversal is also launching a new NBC Sports Network cable channel on November 17th to house its expanding NBA, WNBA, Premier League, and Big Ten packages, with MLB rights expected soon.

The secret sauce? Options and ads

Netflix has effectively cracked pricing elasticity. Its cancellation rate has held at about 2% every month but one since May 2023, even as prices climbed. Turns out, giving customers a choice between premium packages and cheaper ad-supported options keeps churn low.

To justify higher costs and attract new subscribers, platforms are also forming new alliances. Peacock and Apple TV+ launched a joint package that’s far cheaper than subscribing separately. ESPN and Fox Sports rolled out their own bundle this summer.

Partnership bundles boost perceived value and extend ad inventory across platforms. For advertisers, bundles mean broader reach and more touchpoints with viewers committed to multiple services.

What this means for advertisers

The stability of streaming subscriptions, despite rising prices, signals strong consumer commitment. More importantly, the shift toward ad-supported tiers is creating a large and growing CTV audience. Consumers are clearly willing to tolerate ads in exchange for lower prices, especially on the biggest screen in the house.

As tiered offerings and bundle strategies evolve, advertisers gain access to premium audiences who actively choose ad-supported viewing.

Walmart paired actor Walton Goggins with the Grinch to promote Black Friday deals, proving that even mean green characters can sell when wrapped in enough nostalgia and Whoville whimsy.

The Details:

• The 90-second spot features Goggins in full Grinch prosthetics alongside Mindy Lou Who to promote Walmart's November 25–30 Black Friday deals.
• Publicis Groupe agencies extended Walmart's "Who Knew?" platform through Mt. Crumpit set design and upcoming NFL broadcast integrations.
• The campaign leveraged social buzz around Goggins’ casting, building on his role in Walmart’s June launch of the “Who Knew?” messaging strategy.

What We Loved: Walmart used the Grinch's cultural permeance and Goggins' charisma to mask aggressive promotional messaging and subtly sell brand awareness during retail’s most competitive moment.