The short version
- Western European subscribers faced an average monthly cost increase of $1.86 over three years, exceeding the $1.70 rise seen in the US market.
- Major platforms including Netflix, Disney+, and Amazon Prime Video have shifted strategies to include ad-supported tiers while raising prices for premium ad-free experiences.
- The rate of price hikes has slowed recently as companies diversify revenue streams and face consumer resistance to further cost increases.
Subscribers to major streaming platforms in western Europe have endured the steepest subscription cost increases globally over the last three years, according to new industry analysis. Research conducted by Ampere Analysis reveals that the average monthly price for services such as Netflix, Disney+, and Amazon Prime Video rose by $1.86 in the region during this period. This figure surpasses the $1.70 average increase recorded in the United States, which remains the largest streaming market worldwide, and exceeds adjustments made in all other global territories.
The disparity in pricing trajectories highlights how regional factors influence corporate strategy. While domestic competition levels and household income brackets play significant roles in determining subscription costs, western European markets have seen more aggressive monetization efforts compared to areas like sub-Saharan Africa. In those African markets, the average price increase remained below $1 over the same three-year span, reflecting a stark contrast in how providers approach different economic environments.
These financial shifts coincide with broader changes in the business models of the world’s largest video-on-demand services. Over the past four years, companies have moved away from relying solely on premium ad-free tiers. Instead, they have introduced lower-priced options supported by advertising to attract budget-conscious viewers. Simultaneously, these firms are extracting more revenue from users willing to pay for an uninterrupted viewing experience, creating a bifurcated pricing structure that targets different segments of the consumer base.
Netflix’s recent financial performance illustrates this dual approach. The company reported annual revenues exceeding £2 billion for the first time, reaching £2.06 billion last year. This represents an 11 percent growth from the previous year and was driven by a seven percent increase in paid memberships alongside higher average monthly revenue per user. In the United Kingdom, subscribers faced price hikes ranging from £1 to £5.99 for basic ad-supported packages and up to £12.99 for standard ad-free tiers following adjustments in February 2025.
Competitors have adopted similar tactics. Disney+ raised prices in both the UK and US markets last year, setting its UK ad-supported tier at £5.99 per month and the standard ad-free option at £9.99 monthly or £99.90 annually. Amazon Prime Video introduced a separate £2.99 monthly fee for users wishing to remove advertisements from their viewing experience in February 2024. These moves underscore an industry-wide trend toward maximizing revenue per user through tiered offerings rather than relying on uniform subscription fees.
Despite the significant cumulative increases, the pace of price hikes appears to be moderating. Ampere Analysis data shows that the scale of individual price bumps has dropped considerably as consumers reach their limits on willingness to pay. The average percentage increase across the three major streamers fell from 24 percent of the previous subscription price in the 2023-24 period to just 14 percent in 2025-26. This deceleration suggests that providers are becoming more cautious about pushing prices too high, particularly as they navigate intense competition within the sector.
Industry experts note that this shift reflects a maturation of the streaming business model. Jaanika Juntson, a senior research manager at Ampere Analysis, observed that revenue growth is becoming less dependent on direct price increases. As the market stabilizes, companies are diversifying their monetization strategies to maintain profitability without alienating subscribers. This includes leveraging advertising partnerships and optimizing content libraries to retain viewers across different pricing tiers.
The financial health of these platforms remains robust despite the slowing rate of price hikes. Netflix’s pre-tax profits in the UK rose from £63 million to £72.5 million, indicating that higher average revenues per membership are effectively offsetting any potential churn from cost-conscious consumers. As the industry continues to evolve, the focus is likely to remain on balancing premium experiences with accessible entry points, ensuring sustainable growth while managing consumer expectations in an increasingly competitive landscape.
Sources behind this briefing
Go to the original reporting
- The Guardian US↗Netflix, Disney+ and Amazon price rises in western Europe ‘highest in world’
