Streaming Services See A Decline In Subscribers As Prices Rise

A surge in subscription cancellations is hitting major streaming services in the U.S., with defections rising to 6.3% in November.

Daily Mail reports a surge in subscription cancellations is hitting major streaming services in the United States, with defections rising to 6.3% in November, up from 5.1% a year earlier, according to analytics firm Antenna. Over the past two years, a quarter of U.S. subscribers to leading platforms, including AppleTV+, Amazon Prime Video, Max, Peacock, Paramount+, Netflix, Hulu, and Disney+, have abandoned at least three services.

The trend coincides with a steady climb in prices for streaming services, with DailyMail.com analysis revealing that it now costs Americans $121.41 per month to subscribe to ad-free plans with the eight major services and Britbox. This marks a notable increase from just over $100 a year ago.

While streaming services were initially considered a cost-effective alternative to cable TV, the escalating prices, some raised by as much as 43% in the last year, are placing pressure on customer budgets. According to CableTV.com, the average TV-only service from cable providers costs around $83 a month, challenging the perception that cord-cutting is always a financial advantage.

Major streaming platforms, including Apple TV+, Disney+, and Britbox, have recently implemented significant price hikes, further contributing to the financial strain on consumers. Netflix, in particular, discontinued its $9.99 per month ad-free plan for new members, replacing it with a $15.49 per month option, and raised the premium ad-free plan from $19.99 to $22.99 a month.

Streaming companies are exploring alternative strategies to combat rising cancellations, including offering cheaper ad-supported plans and bundle deals. Netflix, Max, Peacock, Paramount+, Disney+, and Hulu are among those selling subscriptions with commercials at discounted rates. For instance, Peacock and Paramount+ provide $5.99 monthly plans, excluding taxes.

Disney+ and Hulu are combining approaches, enticing users with bundle deals. For example, the Disney Bundle Duo Premium, which includes Disney+ and Hulu without ads, is offered at $19.99 a month, saving subscribers $11.99. The Disney Bundle Trio Premium, priced at $24.99 a month, includes Disney+ without ads, Hulu without ads, and ESPN+ with ads.

Despite the surge in cancellations, Antenna notes that some subscribers return to these services over time. The industry’s response to this challenge underscores the increasing reliance on competitive pricing and bundled offerings to attract and retain a diverse user base.