A recent report unveils that the average American now allocates nearly a thousand dollars annually towards subscription streaming services. Despite a significant number of subscribers cutting back due to recent price escalations, the overall expenditure on streaming continues to climb.
Price Hikes Sweep Streaming Services
The overall spend keeps rising despite the price increase of streaming subscription, a recent report says. What could this mean for the average American.
In the past year, a noticeable trend of substantial price hikes across various streaming platforms has emerged.
Apple TV+ initiated the trend in October 2022, bumping its subscription fee from $4.99 to $6.99, marking a 40% surge.
Disney followed suit in December, elevating its Disney+ Basic plan by 25%, from $7.99 to $10.99, subsequently reaching $13.99. This constitutes a staggering 75% surge within a year.
Concurrently, Hulu raised its pricing, with the ad-free tier witnessing a 20% increase from $14.99 to $17.99.
Additionally, Warner Bros. upped HBO Max pricing from $15 to $16, while Netflix discontinued its Basic tier for new or transitioning subscribers, effectively doubling the cost.
Related Article: Netflix Dominates Ad-Supported Streaming As 8 Million Subscribers Join in Just 2 Months
Subscription Spend for US Households
A survey conducted last summer indicated that streaming TV expenses had surpassed cable costs. The latest findings reveal that the average American subscriber now forks out $924 annually for streaming subscriptions, translating to $77 monthly.
Moreover, 25% of the surveyed 5,000 subscribers shell out $100 monthly, with 5% opting for a $200 monthly subscription.
Factors Influencing Expenditure
Several factors contribute to the evolving landscape of streaming costs. Firstly, certain services have introduced advertisements to their basic tiers, enticing subscribers to opt for pricier, ad-free alternatives.
Despite a 57% cancellation rate in response to recent price hikes, 36% of subscribers have opted for upgrades following the introduction of ad-supported versions.
Conversely, some platforms have phased out ad-supported tiers, leaving users with costlier options only.
Furthermore, streaming services like Netflix have initiated measures to curb password sharing, prompting more individuals to create individual accounts.
Save Money Instead If You Find Streaming Sub Costly
If you're serious about saving money, you need the discipline to monitor where your money goes. This also includes saving money when it comes to streaming subscription plans.
In our previous report, we recommended users lessen their streaming costs by listing what services should be trimmed down. We also suggested they maximize their free trials.
Besides that, you can save money by sharing subscriptions with family and friends. However, platforms are getting smarter following the password-sharing crackdown.
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Read Also: Disney+, Hulu Follow Netflix's Steps in Password Sharing Crackdown
