Streaming services such as Netflix and Hulu have been outperforming traditional television services and cable operators. The convenience of being able to watch TV shows, movies, and more at any time has made these platforms popular. However, the continuous increase in subscription costs by these streaming providers has pushed Americans to their limits, according to a survey by Deloitte.
Statistics show that American households are paying 27% more on streaming than they did last year. Half of the respondents in the Deloitte survey expressed their intention to cancel their subscriptions to these streaming services if the charges increase by just $5. Netflix, Hulu, Max, and Amazon Prime Video are the four most widely used streaming services in America.
The Deloitte Report
The Deloitte report states: “This year’s Digital Media Trends shows that US households are spending more on streaming video subscriptions, but they may be reaching their limits. On average, US subscribing households spend US$61 per month on four SVOD services. Additionally, 68% of consumers surveyed pay for either a TV subscription or live streaming TV to not only access content not available on streaming video…”
Streaming Providers Rapidly Increasing Subscription Charges
The 27% price increase represents an amount of $13, rising from last year’s price of $48. Netflix and Max have significantly contributed to this price spike among other streaming providers. In 2023 alone, Netflix increased the price of its two subscription plans, Basic and Premium, by $2.
Similarly, HBO Max increased the monthly price by $1 in January 2023. It also joined the list of streaming services cracking down on password sharing, forcing users to pay more. Amazon Prime Video, on the other hand, has injected ads into its basic plans, forcing users to upgrade to a higher plan to avoid ads.
The report suggests that 75% of millennials and Generation Z would like to combine all streaming services, paying one price to access all types of content available across different platforms. However, streaming providers are applying different strategies to extract more money from users, pushing Americans to their limits.
Once known as an affordable solution, streaming is rapidly becoming more expensive. Popular cable packages like Xfinity, Optimum, and Spectrum provide over 100 channels for $50 to $85, nearing the price of streaming services.
The survey’s respondents also expressed that the algorithms of Disney+, Netflix, and Max have not improved much. More than 50% of younger participants recommend watching social media videos instead of content offered by streaming services. Those under 41 expressed that social media algorithms perform better and prefer social media for watching videos.
