President Trump’s expansive tariffs on global imports, including a blanket 10% levy on goods from numerous trading partners, may indirectly disrupt streaming platforms through economic instability, reduced advertising revenue, and potential international trade retaliation.
While services like Netflix and Disney+ are not directly taxed as digital offerings, the financial uncertainty could lead consumers to reassess discretionary spending on subscriptions. Analysts suggest households might prioritise essential services during downturns, potentially accelerating cancellations for niche platforms such as Apple TV+.
The immediate market reaction to the tariffs saw the S&P 500 plunge by 11%, reflecting investor unease. Streaming companies have sought to mitigate risks by expanding partnerships with telecom providers like Comcast and introducing bundled subscription plans.
Disney reported that over half of new Disney+ subscribers opt for ad-inclusive plans, with 112 million users across its platforms choosing this model. However, industries such as automotive manufacturing—key advertisers facing tariff-related cost hikes—might slash marketing budgets, undermining this strategy. Matthew Bailey, an advertising analyst at Omdia, warns that platforms relying on ad revenue may need to raise prices to offset losses.
Internationally, retaliatory measures could compound challenges. China is reportedly considering restrictions on U.S. film imports or higher tariffs on digital services, while European nations like France enforce local content investment mandates for foreign streamers. Bernstein analyst Laurent Yoon highlights that Netflix, already subject to Europe’s Digital Services Tax, could face additional pressure to increase subscription costs in markets like Germany and the UK.
Meanwhile, production shifts are underway, with North America accounting for 43% of major streamers’ commissions in early 2025, up from 36% the previous year, as studios prioritise cost-effective projects.
Tariffs on electronics manufactured abroad could also drive up prices for streaming hardware such as Roku devices and Apple TVs. While companies might absorb some costs, analysts suggest consumer prices could still rise, particularly for China-made products subject to steep duties. Merchandise linked to popular shows, including Stranger Things apparel or The Mandalorian toys, may become more expensive, squeezing ancillary revenue streams for studios.
Despite these pressures, streaming remains comparatively affordable next to outings like cinema trips or theme park visits. Industry experts note that during past downturns, households prioritised home entertainment, suggesting platforms like Netflix could retain subscribers better than other sectors.
The combination of tariffs, advertising volatility, and global trade tensions shows a complex challenge for the industry. Bundling and ad tiers have stabilised revenues, but prolonged financial headwinds could change content investments and consumer habits in the long term.