Surging Streaming Rates Prompt US Consumer Concerns, Deloitte
(Pixabay)Streaming services like Netflix and Hulu outperform Television services and cable operators. Unlike TV channels, which require viewers to stay home at a specific time to enjoy their favorite show, streaming platforms provide convenience to let viewers watch TV shows, movies, seasons, and much more whenever they desire. However, these streaming providers continuously increasing subscription costs have pushed Americans to their limits, per the Deloitte survey.
According to stats, American households are paying 27% more on streaming than last year's rates. Half of the respondents who participated Deloitte survey intend to cancel these streaming services' subscriptions if they increase the charges again by only $5. Netflix, Hulu, Max, and Amazon Prime Video are America's four widely used streaming services.
The Deloitte report reads:
Streaming Providers Increased Subs Charges RapidlyThis 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...
The 27% price increase represents an amount of $13, rising from last year's price of $48. Netflix and Max significantly compensated for 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. Not only that, it joins the list of streaming services to cough up more money by cracking down on password sharing. Likely, Amazon Prime Video has applied a different strategy to creep in more revenue this year and injected ads into its basic plans, forcing users to upgrade to a higher plan to get rid of ads.
The report hints at viewers' intentions, with 75% of millennials and Generation Z wanting to combine all streaming services. Hence, streamers pay one price to access all types of content available across different streaming platforms. Conversely, streaming providers are applying different strategies to receive more money from users, pushing Americans to their limits.
Is subscribing to streaming services a good deal? 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 Disney+, Netflix, and Max's algorithms have not improved much. More than 50% of younger participants recommend watching social media videos instead of streaming services' offered content. Likewise, those under 41 expressed that social media algorithms perform well and prefer social media for watching videos.
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