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Hit by ‘streamflation’? Here’s why media companies are hiking prices on August 19, 2023 at 10:00 am Business News | The Hill

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Media companies across the board are jacking up the price of their streaming services in what some have dubbed “streamflation” as they look to turn a profit on streaming after years of losses.

Disney announced last week that it plans to increase prices for the ad-free versions of Disney+ and Hulu by at least 20 percent in October, following a “pretty significant” jump in prices just last year.

Netflix also recently axed its cheapest ad-free option, making the $15.49 a month Standard plan the most economical choice for subscribers who want to avoid commercials. Paramount Plus similarly ditched its mid-range, ad-free option in June.

Warner Bros. Discovery’s Max, formerly known as HBO Max, increased its monthly rate by $1 in January, while NBCUniversal increased its plans on Peacock by $1 to $2 per month on Thursday.

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Overall, the average monthly cost of a major streaming service has increased by nearly 25 percent in a year, according to a recent Wall Street Journal analysis

The Financial Times also reported that the total cost of maintaining the top streaming services will increase to $87 a month this fall, making it more expensive than the average $83 a month cable TV package.

“We’re witnessing a contemporary iteration of cable systems, now in digital format – and a normalization of pricing for streaming channels,” Dan Goman, the CEO of Ateliere Creative Technologies, said in a statement to The Hill.

“Unfortunately, for the consumer, this means that the free ride is over,” he added. “The days of a la carte, content-rich, low-cost streaming channels are coming to an end.”

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The price hikes come amid a push to turn a profit on streaming services, most of which have resulted in billions of dollars in losses for media companies as they have prioritized rapid growth in lieu of profits. 

These companies have reported combined losses of $20 billion on their streaming services since early 2020, with only Netflix consistently turning a profit, according to the Journal.

“Streaming services operators are under considerable pressure to deliver results and try everything possible to turn a profit,” Goman said. “The fundamental truth is that content and operating a streaming service are very expensive.”

However, streamers appear confident that subscribers will either swallow the added cost or switch to newer ad-supported versions of their services, which are often significantly cheaper than their ad-free alternatives.

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Disney CEO Bob Iger said on an earnings call last week that the company did not see a significant loss of subscribers in response to its price increase last year, which they found “heartening.”

According to the subscription analytics firm Antenna, 94 percent of Disney+ subscribers accepted the price increase rather than cancelling or switching to the cheaper ad-supported plan.

While 40 percent of new Disney+ subscribers have opted for plans with ads since they launched in December, Iger’s company and several others have said that their ad-supported plans have brought in more revenue per user than their ad-free alternatives in recent months. 

“We’re very optimistic about the long-term advertising potential of this business, even amid a challenging ad market,” Iger said on last week’s call, adding, “We’re obviously trying with our pricing strategy to migrate more subs to the advertiser-supported tier.”

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The Disney CEO noted that the company has kept the cost of its ad-sponsored plan flat, even as it plans to raise the price of its ad-free subscriptions.

Andrey Simonov, a professor with Columbia Business School, said there will likely be some cancellations from rising costs, both due to a typical drop in demand in response to the price increase and the likelihood that people will cancel previously forgotten subscriptions.

“A lot of these subscriptions are something that people paid for a while ago and forgot,” Simonov told The Hill. “There is a lot of good evidence and research that people sign up, and then for a while, they forget to cancel.” 

“At some point, when they start to recalibrate how much they spend, they’ll tend to cancel these in bulk at the same time,” he added. “So, these price increases can easily be a moment when consumers will start to reconsider their choices. And so, in some ways, they will stop this consuming by inertia or subscribing … by inertia and make an active decision.”

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However, Simonov said that media companies will likely not take a major hit over the price hikes in the short term. 

“From what we know from research, people are often not very elastic in subscription price points,” he said, adding, “When they subscribe, they pay every month this amount of money and this extra $3 a month wouldn’t seem like a lot to a lot of people. So, compared to what these guys are getting in terms of margin, I don’t think volume will go down so much that they will be actually worse off in the short run.”

Amid a pair of strikes in Hollywood, the amount of content that media companies have in store will also be a “key piece of the puzzle” to the subscriber response to rising costs, Simonov added.

“A lot of subscriptions are coming from some super star shows,” he said, pointing to a popular show like “Succession” as an example. 

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“I’ll sign up and then there’ll be attention spillover to other content they have. And so, I’ll consume another show and then by inertia I’ll keep paying for a while even though I don’t consume so much,” he added.

However, without those popular shows, he noted, “those events will go away.”

​Business, Technology, inflation, media, Streaming Media companies across the board are jacking up the price of their streaming services in what some have dubbed “streamflation” as they look to turn a profit on streaming after years of losses. Disney announced last week that it plans to increase prices for the ad-free versions of Disney+ and Hulu by at least 20…  

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Why 9 Million Americans Have Left

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The Growing American Exodus

Nearly 9 million Americans now live outside the United States—a number that rivals the population of several states and signals a profound shift in how people view the American dream. This mass migration isn’t confined to retirees or the wealthy. Thanks to remote work, digital nomad visas, and mounting pressures at home, young professionals, families, and business owners are increasingly joining the ranks of expats.

Rising Costs and Shrinking Wallets

Living in the US has become increasingly expensive. Weekly grocery bills topping $300 are not uncommon, and everyday items like coffee and beef have surged in price over the last year. Rent, utilities, and other essentials also continue to climb, leaving many Americans to cut meals or put off purchases just to make ends meet. In contrast, life in countries like Mexico or Costa Rica often costs just 50–60% of what it does in the US—without sacrificing comfort or quality.

Health Care Concerns Drive Migration

America’s health care system is a major trigger for relocation. Despite the fact that the US spends more per person on health care than any other country, millions struggle to access affordable treatment. Over half of Americans admit to delaying medical care due to cost, with households earning below $40,000 seeing this rate jump to 63%. Many expats point to countries such as Spain or Thailand, where health care is both affordable and accessible, as a major draw.

Seeking Safety Abroad

Public safety issues—especially violent crime and gun-related incidents—have made many Americans feel unsafe, even in their own communities. The 2024 Global Peace Index documents a decline in North America’s safety ratings, while families in major cities often prioritize teaching their children to avoid gun violence over simple street safety. In many overseas destinations, newly arrived American families report a significant improvement in their sense of security and peace of mind.

Tax Burdens and Bureaucracy

US tax laws extend abroad, requiring expats to file annual returns and comply with complicated rules through acts such as FATCA. For some, the burden of global tax compliance is so great that thousands relinquish their US citizenship each year simply to escape the paperwork and scrutiny.

The Digital Nomad Revolution

Remote work has unlocked new pathways for Americans. Over a quarter of all paid workdays in the US are now fully remote, and more than 40 countries offer digital nomad visas for foreign professionals. Many Americans are leveraging this opportunity to maintain their US incomes while cutting costs and upgrading their quality of life abroad.

Conclusion: Redefining the Dream

The mass departure of nearly 9 million Americans reveals deep cracks in what was once considered the land of opportunity. Escalating costs, inaccessible healthcare, safety concerns, and relentless bureaucracy have spurred a global search for better options. For millions, the modern American dream is no longer tied to a white-picket fence, but found in newfound freedom beyond America’s borders.

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Will Theaters Crush Streaming in Hollywood’s Next Act?

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Hollywood is bracing for a pivotal comeback, and for movie lovers, it’s the kind of shake-up that could redefine the very culture of cinema. With the freshly merged Paramount-Skydance shaking up its strategy, CEO David Ellison’s announcement doesn’t just signal a change—it reignites the passion for moviegoing that built the magic of Hollywood in the first place.

Theatrical Experience Roars Back

Fans and insiders alike have felt the itch for more event movies. For years, streaming promised endless options, but fragmented attention left many longing for communal spectacle. Now, with Paramount-Skydance tripling its film output for the big screen, it’s clear: studio leaders believe there’s no substitute for the lights, the hush before the opening credits, and the collective thrill of reacting to Hollywood’s latest blockbusters. Ellison’s pivot away from streaming exclusives taps deep into what unites cinephiles—the lived experience of cinema as art and event, not just content.

Industry Pulse: From Crisis to Renaissance

On the financial front, the numbers are as electrifying as any plot twist. After years of doubt, the box office is roaring. AMC, the world’s largest theater chain, reports a staggering 26% spike in moviegoer attendance and 36% revenue growth in Q2 2025. That kind of momentum hasn’t been seen since the heyday of summer tentpoles—and it’s not just about more tickets sold. AMC’s strategy—premium screens, with IMAX and Dolby Cinema, curated concessions, and branded collectibles—has turned every new release into an event, driving per-customer profits up nearly 50% compared to pre-pandemic norms.

Blockbusters Lead the Culture

Forget the gloom of endless streaming drops; when films like Top Gun: Maverick, Mission: Impossible, Minecraft, and surprise hits like Weapons and Freakier Friday draw crowds, the industry—and movie fans—sit up and take notice. Movie-themed collectibles and concession innovations, from Barbie’s iconic pink car popcorn holders to anniversary tie-ins, have made each screening a moment worth remembering, blending nostalgia and discovery. The focus: high-impact, shared audience experiences that streaming can’t replicate.

Streaming’s Limits and Studio Strategy

Yes, streaming is still surging, but the tide may be turning. The biggest franchises, and the biggest cultural events, happen when audiences come together for a theatrical release. Paramount-Skydance’s shift signals to rivals that premium storytelling and box office spectacle are again at the center of Hollywood value creation. The result is not just higher profits for exhibitors like AMC, but a rebirth of movie-going as the ultimate destination for fans hungry for connection and cinematic adventure.

Future Forecast: Culture, Community, and Blockbuster Dreams

As PwC and others warn that box office totals may take years to fully catch up, movie lovers and industry leaders alike are betting that exclusive theatrical runs, enhanced viewing experiences, and fan-driven engagement are the ingredients for long-term recovery—and a new golden age. The Paramount-Skydance play is more than a business move; it’s a rallying cry for the art of the theatrical event. Expect more big bets, more surprises, and—finally—a long-overdue renaissance for the silver screen.

For those who believe in the power of cinema, it’s a thrilling second act—and the best seat in the house might be front and center once again.

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Why Are Influencers Getting $7K to Post About Israel?

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Influencers are being paid as much as $7,000 per post by the Israeli government as part of an expansive and sophisticated digital propaganda campaign. This effort is designed to influence global public opinion—especially among younger social media users—about Israel’s actions in Gaza and to counter critical narratives about the ongoing humanitarian situation.

How Much Is Being Spent?

Recent reports confirm that Israel has dedicated more than $40 million this year to social media and digital influence campaigns, targeting popular platforms such as TikTok, YouTube, and Instagram. In addition to direct influencer payments, Israel is investing tens of millions more in paid ads, search engine placements, and contracts with major tech companies like Google and Meta to push pro-Israel content and challenge critical coverage of issues like the famine in Gaza.

What’s the Strategy?

  • Influencer Contracts: Influencers are recruited—often with all-expenses-paid trips to Israel, highly managed experiences, and direct payments—to post content that improves Israel’s image.
  • Ad Campaigns: State-backed ad buys show lively Gaza markets and restaurants to counter global reports of famine and humanitarian crisis.
  • Narrative Management: These posts and ads often avoid overt propaganda. Instead, they use personal stories, emotional appeals, and “behind the scenes” glimpses intended to humanize Israel’s side of the conflict and create doubt about reports by the UN and humanitarian agencies.
  • Amplification: Paid content is strategically promoted so it dominates news feeds and is picked up by news aggregators, Wikipedia editors, and even AI systems that rely on “trusted” digital sources.

Why Is This Happening Now?

The humanitarian situation in Gaza has generated increasing international criticism, especially after the UN classified parts of Gaza as experiencing famine. In this environment, digital public relations has become a primary front in Israel’s efforts to defend its policies and limit diplomatic fallout. By investing in social media influencers, Israel is adapting old-school propaganda strategies (“Hasbara”) to the era of algorithms and youth-driven content.

Why Does It Matter?

This campaign represents a major blurring of the lines between paid promotion, journalism, and activism. When governments pay high-profile influencers to shape social media narratives, it becomes harder for audiences—especially young people—to distinguish between authentic perspectives and sponsored messaging.

As user trust in mainstream news decreases and social media’s power grows, understanding how digital influence operations work is critical for anyone who wants to stay informed and think critically about global events.


In short: Influencers are getting $7,000 per post because Israel is prioritizing social media as a battleground for public opinion, investing millions in shaping what global audiences see, hear, and believe about Gaza and the conflict.

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