U.S. Senator Bob Casey (D-PA), Chairman of the Senate Health, Education, Labor and Pensions (HELP) Subcommittee on Children & Families, has released a study highlighting the phenomenon of “streamflation.” The study, titled “A Steady Stream of Price Hikes: How Streaming Services Put Profit Over Consumers,” investigates how streaming platforms have increased subscription costs while simultaneously reducing content, imposing streaming restrictions, and introducing advertisements to previously ad-free platforms.
Senator Casey criticized streaming services for exploiting consumers, particularly hardworking American families, by raising prices and limiting content access. “Families sign up for a service, only to have the rug pulled out from under them when they learn they’ll have to pay more to stream less,” Casey stated. The report identifies major streaming services, including Netflix, Spotify, Disney Plus, Paramount Plus, Hulu, and Max, as culprits in this trend, accusing them of prioritizing profit over consumer satisfaction.
The report is part of Casey’s ongoing investigation into corporate practices he terms “greedflation,” where companies use inflation as a cover to raise prices and increase profits at the expense of consumers. Since November 2023, Casey has been scrutinizing corporate price gouging, previously releasing reports on how big corporations have inflated food prices, reduced product sizes without lowering prices (shrinkflation), and added hidden fees to consumer bills.
Casey argues that streaming services have broken their promises to subscribers by shrinking content libraries, restricting account sharing, and introducing advertisements. This situation has left many American families paying more for a diminished service. He believes no Pennsylvanian should face unexpected subscription fee increases or find that their favorite shows have disappeared from the platform they paid for.
The Senator’s efforts include pushing for legislative measures to protect consumers from corporate price gouging and deceptive practices. In February 2024, he introduced legislation to ban excessive price increases and prevent corporations from exploiting consumers through hidden fees and reduced product sizes.
Casey’s report underscores the need for greater transparency and accountability in the streaming industry, urging regulatory bodies like the Federal Trade Commission to take action against these unfair practices.