Consumers Fed Up with Streaming Service Price Hikes
By Movieguide® Contributor
As streaming services continue to raise their prices as they struggle to reach profitability, consumers are becoming wary of these changes, leading many to consider dropping their subscriptions.
A new study from the information company TransUnion found that millennials are particularly intolerant of rising prices, with 53% saying they have given up a subscription in the past due to a price hike.
Among Gen Z, “30% of them cancel[ed] more than one service in the last six months and another 30% [told] researchers they had canceled one service.”
This data is troubling for streaming platforms as many are still losing money despite significant price increases over recent years. This is, perhaps, the reason that ad-supported subscription tiers have become mainstream so quickly. They allow the streaming services to offer their libraries at a more affordable price while still generating high revenue per user.
“We’ve long assumed that ad-supported streaming environments can help consumers manage the expense of multiple streaming subscriptions. In this study, we way more than half of consumers canceled their subscriptions as soon as they experienced price increases,” said Julie Clark, senior vice president of the Media and Entertainment Vertical at TransUnion.
“These findings absolutely support a case for ad-supported tiers, potentially with lower pricing options for consumers,” she continued. “Lower prices for the services themselves may seem challenging short term. From and RPU [revenue per user] perspective, ad-supported offerings can still offer longer term benefits for streaming platforms and content owners.”
With consumers cognizant of subscription costs, streaming services must work harder than ever to keep users on their platforms. According to TransUnion’s research, 29% of respondents have canceled a subscription after finishing a movie or show, while 28% have left after feeling like there wasn’t enough new content being added.
While these consumer trends affect everyone in the streaming business, certain platforms are hit worse than others. “Cancel Disney+,” for example, was trending on social media earlier this year due to its high prices and lack of diversified content.
Movieguide® previously reported:
As streaming services increase their monthly subscription rates, ‘Cancel Disney Plus’ has started trending.
“Streaming platforms have become a key part of many studios content distribution plans, but not all of them have been quite as successful as Disney+ was out of the gate,” Cinema Blend reported.
“However what started as an incredible subscription cost has been going steadily up over the last three and a half years. And with the news of the most recent Disney+ price increase and more, it looks like some fans have hit their limit, as ‘Cancel Disney Plus’ is currently trending,” the source continued. “It was confirmed that the ad-free version of a Disney+ subscription will jump from its current price of $10.99 per month to $13.99 per month.”
“Alongside came the news that starting new year, the service will begin to crack down on password sharing, though exactly what form that will take is still unclear,” the video added. “The phrase ‘Cancel Disney Plus’ has seen a 510% increase since the announcement, per NoDeposit.guide. While a price increase certainly means increased revenue for Disney+, if enough people cancel subscriptions, it could mean an overall decline for the service.”
- Content: +2Share:
- Content: +2