Americans Now Spend $69 per Month on Video Streaming — and Nearly Half Think It’s Too Much

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As a keen observer, I once found streaming platforms such as Netflix to be an affordable substitute for traditional cable television. However, these days, it seems that the streamers themselves are undergoing similar financial strains, with subscription costs escalating – a trend that’s causing some apprehension, especially among younger viewers. The perceived value of their services appears to be waning as a result.

On average, American video streaming subscribers typically pay for about four services, costing them a combined $69 per month – an increase of 13% compared to the previous year as suggested by Deloitte’s 19th annual Digital Media Trends report, published on Tuesday. Contrastingly, cable or satellite TV customers commonly spend approximately $125 monthly on average.

Approximately four out of ten individuals who were polled feel they are overpaying for their streaming services, and a similar number think the content provided isn’t commensurate with the cost (an increase of 5 percentage points since 2024). Remarkably, six in ten consumers indicated that if their preferred streaming platform increased its monthly fee by $5, they would terminate the service. These findings stem from a recent survey.

It seems that the cost increase for U.S. Subscription Video-on-Demand (SVOD) services, averaging around $16 per month, is causing some discomfort among consumers, particularly younger generations who are more likely to cancel their subscriptions or switch to cheaper (or free) ad-supported options, as suggested by a Deloitte report. The survey reveals that currently, 54% of SVOD subscribers have at least one ad-supported tier in their paid services, which is an increase from the 46% reported last year.

High-tier streaming services often face challenges in determining an optimal pricing level without potentially displeasing their customers, according to Deloitte’s study. Generally, consumers view $14 monthly as a fair price for their preferred ad-free services; they consider prices exceeding $25 monthly to be excessively high. Regarding ad-supported services, respondents suggested that $10 per month would be ideal (compared to the current average market rate of $9), while any tier with an ad price above $19 is deemed too costly.

Even though streaming service providers strive to reduce customer cancellations, around 39% of viewers have terminated at least one paid subscription video on demand (SVOD) service within the last half year. This cancellation rate has stayed fairly steady in recent times. Notably, this percentage rises to over 50% among Generation Z and millennials. Furthermore, the trend of “churn and reactivate,” where consumers cancel and then restart the same subscription within six months, persists as well. Approximately 24% of all users engaged in this behavior during the past six months (40% for Gen Z and 35% for millennial participants).

The 19th version of the Deloitte’s Digital Media Trends Report, published in October 2024, is derived from a survey conducted among 3,595 individuals aged 14 and above.

Other findings from the Deloitte study:

  • Content on social platforms holds greater relevance for younger generations: 56% of Gen Zs and 43% of millennials surveyed find social media content more relevant than traditional TV shows and movies. Around half of Gen Zs (52%) and millennials (45%) surveyed feel a stronger personal connection to social media creators than TV personalities or actors.
  • About 29% of consumers overall (and 49% of Gen Zs and 40% of millennials) would be more willing to watch TV shows or movies starring their favorite online creators. However, 30% of consumers believe creators lose their authenticity when featured on traditional TV.
  • Gen Zs surveyed spend 54% more time (about 50 minutes more per day) than the average consumer on social platforms and watching user-generated content, and 26% less time (about 44 minutes less per day) than the average consumer does watching TV and movies.

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2025-03-25 14:16