How the Years of High Inflation Have Impacted the Streaming Industry

By: The BitMar Team

Image Source: U.S. Inflation Calculator.

Inflation has been a topic of concern, for many people around the World, over the past few years. In this article, we will review how the years of high inflation have impacted various sectors—including the streaming industry. Ultimately, the inflation has increased the cost of production of streaming-related physical goods, and streaming services.

As the cost of raw materials – such, as: steel, aluminum, and copper – has increased, the cost of production for streaming devices – such, as: TVs, computers, streaming sticks/boxes/players, and smartphones – has also surged in price. As a result of this inflation, the cost of streaming services has escalated, as well; which has made streaming less affordable to consumers. To be fair, competition has also played a major role, regarding streaming services' pricing, in recent years – as we recently reported – but no one can logically argue that this inflation has helped the situation.

The CNBC report further highlights: that these inflationary pressures have also impacted the advertising sector; which has had a ripple effect on the streaming industry. As the cost of advertising has risen, companies that advertise on streaming platforms have had to pay more, to reach their target audiences. Consequently, this has led to a reduction on advertising spending; impacting the availability of ads on these platforms. These losses have been passed on to consumers, in the form of higher subscription fees.

The aforementioned inflationary pressures have also impacted the content creation, and distribution process, in the streaming industry. As the cost of raw materials, and production has increased, the cost of creating and distributing content has also gone up. This has led to some companies reducing their investments in new content, and focusing on monetizing their existing content, to make up for the increased cost of production.

The streaming industry has also been impacted, by inflation, in the form of content availability. Due to the previously-mentioned increased cost of production, and distribution, some smaller content creators, and distributors, have struggled to keep up with the new financial pressures. This has led to a decrease in the availability of content, on some streaming platforms; which has had a negative impact on the user experience.

In conclusion: As with many other industries, the impact of the past years of inflation has been significant on the streaming industry. The increased cost of production, advertising, and content creation and distribution, has led to higher prices for consumers; and a decrease in the availability of content. While the long-term effects of inflation, on the streaming industry, are yet to be seen, it is clear that it has had a notable impact, in the short-term.

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