Streaming services in Hungary see significant price shifts amidst increasing competition

Streaming Services in Hungary See Significant Price Shifts Amidst Increasing Competition

In recent years, the streaming industry in Hungary has undergone substantial changes, influenced largely by strategies of major global providers and shifting market dynamics. Initially, streaming platforms such as Netflix, Disney+, and Prime Video attracted consumers with low-cost, ad-free content, providing a compelling alternative to traditional cable TV. However, the landscape has evolved significantly as these companies attempt to turn a profit by adjusting pricing models and introducing adverts.

Price Adjustments and Ad Inclusion

The trend began with Disney+ increasing its subscription rates in November 2022, followed in quick succession by other leading services, each initiating their own pricing adjustments over the past year. SkyShowtime and Max, formerly HBO Max, revised their pricing strategies to encourage consumers to either accept advertisements within their cheaper packages or pay more for ad-free access. Netflix and Prime Video have also implemented price hikes, with Netflix’s basic package now costing 2,890 forints and Prime Video’s standard package rising from 899 to 1,900 forints.

Interestingly, SkyShowtime has adopted a unique approach, giving subscribers the choice to maintain existing rates with adverts or pay 40% more for an ad-free experience. This type of consumer choice, though presently unique to SkyShowtime in Hungary, mirrors similar models seen elsewhere where platforms like Netflix and Disney+ offer ad-tiered pricing options.

Impact on Subscription Costs

These changes mean that consumers subscribing to five of the most popular platforms could spend around 12,000 forints monthly, marking a near 20% rise compared to last year. For premium packages, this figure can exceed 20,000 forints monthly. Popular providers like YouTube have also increased their premium subscription fees substantially, with individual packages leaping from 1,790 forints to 2,390 forints, and family packages skyrocketing by 78% to 4,790 forints.

Emergence of Local Streaming Providers

Amidst these adjustments, domestic players such as RTL and TV2 have seized the opportunity to expand their streaming offerings. These broadcasters now provide streaming services with packages accessible through traditional TV service providers. RTL’s rebranded streaming service, RTL Active, requires a subscription cost, while TV2’s Play Premium offers content with strategic segmentation, incorporating lower-cost packages for non-live content, including sports, at merely 500 forints per month.

The Network4 group has carved a niche within sports streaming, offering Net4+ where consumers can access exclusive sports content for 2,990 forints monthly. Meanwhile, Direct One offers a hybrid service combining streaming and traditional TV provider attributes, facilitating access to TV2 and RTL’s platforms along with a wide selection of channels and an online video library.

Market Dynamics and Consumer Behaviour

While the global giants retain substantial market shares, with Netflix maintaining nearly 265,000 daily users and Max securing 112,000 daily viewers in Hungary, domestic services are increasingly gaining traction. Recent Nielsen Media Research Hungary (NMHH) studies indicate TV2 and RTL’s platforms rising in popularity, particularly after acquiring broadcasting rights to major sports events like the Champions League.

The findings reveal a diversifying streaming market where new platforms attract individuals not currently using other services, while some consumers opt to use multiple platforms. This diversification may affect the dominance of international giants, exemplified by Disney+ falling in rankings behind growing Hungarian platforms even before its latest price hikes.

Overall, the shifts in pricing strategies, the introduction of local competitors, and evolving consumer preferences reflect an increasingly complex interplay in Hungary’s streaming sector. The ongoing adjustments are indicative of a maturing market responding to both consumer demand and competitive strategies, setting the stage for further developments.

Source: Noah Wire Services