Good news everyone! Or not.
According to an online report, streaming services are looking to double the number of tiers they offer customers. This isn't a good thing. Well, I don't think it is.
Let's start by looking at the report, then we'll go from there.
Roger Cheng from Cord Cutters News reported last week that Deloitte Technology, Media, & Telecommunications predictions for the upcoming year pointed to doubling of pricing tiers:
You're already seeing the results of the streaming services' shift to prioritize profitability. Virtually every streaming service has raised prices on their existing plans, or introduced new tiers, like Max's Bleacher Report sports add-on, which will costs an additional $9.99 a month starting in March. Netflix brought back its basic plan -- with a $2 increase. Disney+ and Netflix introduced cheaper ad-based tiers, with Amazon set to roll out ads next year, with the option to pay $2.99 to remove them.
But, according to Deloitte's predictions, this is just the first step. The top U.S. providers offer an average of around four pricing tiers, typically ranging from a cheap ad-based one to a premium one with offline viewing and 4K or Dolby Vision quality video. That average is expected to double to eight tiers next year, with the firm noting that some may offer many more.
"As streaming services work toward profitability, they're getting resourceful with how they offer content to viewers," said Jana Arbanas, vice chair of Deloitte who leads the firm's telecom, media, and entertainment coverage.
These tiers show that the days of paying a single rate for all of the content are long gone, and that consumers will need to do more homework when figuring out which plan is right for them. This gets infinitely more complicated as people are increasingly looking to trim their budgets and keep their subscriptions to a minimum.
That complication is what I mean when I say this is not good news. Sure, more options generally are a good thing. However, confusing pricing tiers often lead to no good, and can actually cost someone more money unless a lot of work is done. Right now, with minimal tiers, that's not too hard. Double the work, though, and that opens up the greater chance someone will pay for more than they really should.
My Streaming Life doesn't need any more complications. I want to keep it simple. Of course, I don't subscribe to a lot of services, so much of this may not impact me. I'll use a service for a month, then drop it. I'll switch services every month, and over a year, I get to watch a lot of content from a lot of services for a lot less money. Whatever changes they make, this won't change.
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