Streaming services like Netflix used to look like a much cheaper alternative to cable TV. But now streamers are facing similar pressures as prices climb — and the perceived value of their services diminishes, particularly among younger consumers.
On average, streaming video subscribers in the U.S. pay for four services totaling $69 per month, a 13% year-over-year increase, according to Deloitte’s 19th annual Digital Media Trends report, released Tuesday. By comparison, cable or satellite TV customers reported spending $125 per month on average.
Almost half (47%) of those surveyed said they pay too much for the streaming services they use, and 41% believe the content available on these services isn’t worth the price (up 5 percentage points from 2024). Indeed, 60% of consumers said that if their favorite streamer raised its prices by $5 per month they would cancel the service, the survey found.
With U.S. subscription prices rising on average to $16 per month for subscription video-on-demand (SVOD) services, consumers appear to be feeling a pinch, the Deloitte report indicates — and younger generations surveyed are especially prone to canceling services or opt for less expensive (or free) ad-supported alternatives. According to they survey, 54% of SVOD subscribers have at least one ad-supported tier of a paid service, up from 46% last year.
Premium streaming services may struggle to find an ideal price point with little flexibility to raise prices without further alienating customers, per Deloitte’s analysis. On average, consumers consider $14 per month to be “just the right price” for their favorite ad-free streaming services; prices above $25 per month are seen as too high. Respondents said $10 monthly is ideal for a favorite ad-supported service (compared with the current market average of $9 per month), while ad tiers priced above $19 are considered too expensive.
Despite streaming providers’ efforts to minimize churn, 39% of consumers have canceled at least one paid SVOD service in the last six months, a rate that has remained relatively stable in recent years. This figure jumps to over 50% for Gen Zs and millennials. Additionally, the phenomenon of “churn and return” — in which consumers cancel and then renew the same subscription within six months — also remains consistent, with 24% of all consumers doing so in the past six months (40% for Gen Z and 35% for millennial respondents).
The 19th edition of Deloitte’s Digital Media Trends report is based on a survey of 3,595 consumers 14 and older that was fielded in October 2024.
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.
