Advanced Television

Report: Streaming price hikes set to continue in Germany

December 11, 2023

As the latest Bundesliga season unfolds, and Christmas holidays are just around the corner, TeraVolt, a QVEST Company and solution provider for digital media products and consulting, has shed light on the evolving and increasingly expensive world of streaming in Germany.

To avoid missing out, payment is necessary. Users often encounter paywalls within a streaming platform prompting them to subscribe to additional services in order to access all desired content. This complexity drives up overall costs for consumers. Since mid-2022, the expenses for accessing all major sports and entertainment offerings have surged by nearly 25 per cent; an ‘All-In’ package, priced at €0.68, now costs roughly €50 more per month.

This trend is set to continue, as further price hikes have been announced or are anticipated, especially for those seeking ad-free, high-quality viewing experiences in sports, films, and series. Bundles have emerged as a savvy solution to combat these rising costs. Providers such as Telekom, Sky, Vodafone, waipu and O2 offer bundles that can potentially save consumers several hundred euros per year. This strategy effectively counters the trend of rising subscription fees for premium products, as many providers now introduce advertising-supported packages as more affordable entry-level options.

The market is thus increasingly bifurcating into cost-effective, ad-supported, and more expensive premium tiers. The challenge for consumers in this transforming TV industry is getting more and more complicated.

“In the new TV reality, viewers are challenged to balance complexity, cost and content. The industry must adapt to offer more streamlined and cost-effective ways for consumers to access the diverse range of content they desire. Ad-based product tiers are an important part of the solution here,” said Tobias Künkel, CEO of TeraVolt.

“In this era of streaming abundance, TV platforms have a more important role than ever. As viewers grapple with a dozen of choices they provide aggregation, curation and guidance,” concluded Künkel.

Categories: Articles, Markets, OTT, Research, VOD

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