Streaming Services Face Price Hikes and Bundling in 2026

Streaming services are preparing for a challenging future as subscription prices continue to rise and bundling strategies become more prevalent. By 2026, subscribers can expect significant changes that will reshape how they access content, shifting from the original promise of limitless viewing to a more traditional cable-like experience.

The reality is that the days of affordable streaming may be numbered. With increasing production and licensing costs, providers have little incentive to stabilize prices. According to Christofer Hamilton, industry insights manager at Parrot Analytics, streaming companies are adjusting their content spending to better align with the realistic lifetime value of each subscriber. As they grapple with profitability, many services are likely to increase subscription costs rather than focus solely on acquiring new users.

Streaming platforms are expected to introduce tiered pricing structures that may resemble a menu, according to Michael Goodman, director of entertainment research at Parks Associates. Premium features—such as ad-free streaming, 4K resolution, and multiple simultaneous streams—could see price increases, while ad-supported options might become more prevalent.

If subscribers wish to halt the continuous price hikes, they may need to reconsider their subscriptions and explore cheaper alternatives. Goodman noted, “Until we see net adds stall or decline as a result of price hikes, services have no incentive to stop raising prices.” The shift toward cheaper or ad-supported platforms, such as free ad-supported streaming television (FAST) channels, may offer some relief.

The specter of government regulation looms over the industry, though action appears unlikely in the current political climate. Bill Yousman, professor and director of the Media Literacy and Digital Culture graduate program at Sacred Heart University, expressed skepticism regarding any meaningful regulation to curb price increases. He stated, “If the big streaming companies had their way, there would be no limit to their price hikes.”

As streaming services seek new revenue streams, bundling with traditional pay television and other services is becoming a popular strategy. This harkens back to the cable era when subscribers often held onto unnecessary services to maintain discounts on their cable bills. Hamilton remarked, “For subscribers, 2026 is the year streaming stops feeling infinite and starts feeling more like premium cable used to: fewer apps, clearer bundles, and higher expectations for each service they pay for.”

The potential sale of Warner Bros. Discovery’s (WBD) assets adds another layer of complexity to the streaming landscape. Plans to offload HBO Max to Netflix for an equity value of approximately $72 billion are currently underway, but Paramount has made a competing bid of $108.4 billion. A shareholder vote is expected in spring or early summer 2024, which will determine the future of HBO Max and its integration with Netflix and Paramount+.

If Netflix acquires HBO Max, subscribers may face increased prices due to reduced competition. However, Goodman believes that such a merger could result in a more streamlined experience for users, with continued investment in premium content. Yet, content transitions often take time, and any significant changes may not be felt until after 2026.

Looking further ahead, the consolidation of streaming services could lead to a more homogeneous content landscape. Analysts predict that merged companies may shy away from niche programming in favor of established franchises. Robert Rosenberg, a partner at a New York law firm, commented that a focus on proven intellectual property is likely to reduce the variety of content available to viewers.

Despite these challenges, there is hope for a more stable streaming future. As services strive to differentiate themselves, there may be opportunities for platforms to offer unique and diverse content at competitive prices. Bill Michels, chief product officer at Gracenote, emphasized the importance of variety for subscribers as the industry evolves.

As 2026 approaches, streaming subscribers must prepare for a transformed landscape marked by rising costs and bundled services, which may ultimately redefine their viewing habits.