A new report reveals that the average American spends close to a thousand dollars per year on subscription streaming services. Despite the fact that more than half of subscribers have responded to recent steep price increases by cancelling at least one of their streaming subscriptions, the overall spend on streaming services continues to rise. The report highlights a consistent pattern of price rises for streaming subscriptions, with services such as Apple TV+, Disney+, and Hulu increasing their prices by substantial amounts. Furthermore, the report suggests that streaming TV costs have surpassed cable costs and the average US subscriber pays close to $1,000 per year for subscriptions. The study also reveals that user behavior has been influenced by the introduction of ads and the removal of ad-funded tiers in some services, as well as the crackdown on password sharing by streaming platforms like Netflix.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Steep price rises | Increasing subscription costs | Higher subscription costs for streaming services | Demand for premium content and profitability |
| Ads in basic tiers | Introduction of ads | More ads in basic tiers, push for upgrades | Generating additional revenue and increasing profits |
| Removal of ad-funded tiers | Elimination of ad-supported options | Limited options for ad-supported streaming | Increase revenue and focus on premium content |
| Crackdown on password sharing | Reduction in password sharing | More individual streaming accounts | Protecting content and boosting subscription numbers |