How is the streaming business faring in general?
Streaming is growing fast by most measures. Global online video revenue passed pay-TV revenue for the first time in 2025, reaching $176 billion against pay-TV's $170 billion, based on Omdia data published in June 2026. Streaming took 48.6% of US TV watch-time in May 2026, a Nielsen record. Eight major streaming services raised prices in 2026, making it one of the busiest years for streaming price increases on record, with Netflix, Apple TV, Peacock, Prime Video, YouTube Premium, Disney+ and Hulu all announcing hikes.1
The growth has not stopped consumers from pushing back. Antenna recorded US premium SVOD subscriber growth of 7% in 2025, the category's first single-digit year, down from 12% in 2024, and cancellations offset most sign-ups outside the fourth quarter.4 Tech analyst Paolo Pescatore told CNET that consumers are becoming more selective, "further increasing risk and encouraging more people to dip in and out rather than remain permanently subscribed."6 Disney+ and Hulu combined grew operating income 88% to $582 million in the quarter ended March 2026, and Disney guided to a streaming operating margin of at least 10% for fiscal 2026.4
Why the sharp increase?
The cost of producing exclusive shows and retaining licenses is the main driver, according to Android Police.3 The Hollywood Reporter notes that since 2022, streaming inflation has risen about three times faster than the broader inflation rate.1
Disney argued that it raised its standalone ad-supported plans by only 4%, while competitors raised theirs by an average of 13%, according to PCMag.5 PCMag also reports that Disney plans to use the extra funds to invest in new tech and features.5 Apple TV's 200% increase since 2022, the largest of the six services in the chart, came in a year when Nerdist counted Apple TV among the services adding to the 2026 total of streaming price hikes, with its monthly price rising $2 to $14.99 on Aug. 26.1 PCMag reports that there may be some relief ahead, as Disney+ is mulling a free tier, though the selection would likely be limited.5
Was generative AI generally good for the business?
Netflix describes generative AI as a "significant opportunity" across its streaming platform, including improving its recommendations, ads business, and movies and TV content.2 The company said in its earnings letter to shareholders that it is "empowering creators with a broad set of GenAI tools to help them achieve their visions and deliver even more impactful titles for members."2
Netflix CEO Ted Sarandos said AI can enhance the overall TV and movie experience but "can't automatically make you a great storyteller if you're not."2 He added that Netflix is "all in" on AI helping creative partners "tell stories better, faster and in new ways."2 However, many in the entertainment industry remain skeptical. SAG-AFTRA previously led an actors' strike in July 2023 over concerns about AI use, and an upstart studio called Particle6 recently faced backlash from SAG-AFTRA for its plan to create and monetize AI-generated actors.2