It is no secret that the cost of streaming continues to increase, and on a yearly basis, and the cost just amplifies the more streaming services a home is signed up to. However, data from Deloitte’s latest Digital Media Trends report suggests homes are now paying as much as $69 on average on streaming, and for as few as four subscription services.
At this price, homes are paying on average around $17 per streaming service. This seems a little high when considering the actual cost of many streaming services today, but it is still another indication that the cost of streaming is continuing to become a major concern for consumers.
It is also an average cost that isn’t out of the realms of possibility. Netflix, for example, now charges a cool $25 a month for its Premium plan, and that subscription alone would account for a significant portion of the suggested $70. If also subscribed to Max’s most expensive plan (at $20.99 a month), homes would be up to $46 a month on as few as two subscription services.
According to the report, the cost of these subscription tiers are well beyond what consumers want to pay for an ad-free service. In fact, those surveyed indicated that $14 is “the right price” for an ad-free subscription to their favorite SVOD service, suggesting that they would expect to pay less for services they use less often.
It could be worse. The same report also found subscribers report spending an average of $125 a month on cable or satellite TV subscriptions, significantly more than the $69 average amount those not signed up to a cable or satellite TV package are paying.
Of course, live TV streaming services are a cheaper alternative to traditional cable or satellite TV packages, and the report notes the cheaper prices are proving to be a “slightly” more popular solution with younger generations, typically resulting in a 35% saving each month on average.
Regardless of whether signed up to a traditional TV package or live TV streaming alternative, the report suggests prices in general are a major hurdle that’s stopping many consumers from signing up to a live TV plan. According to the data, those that currently have a cable or satellite TV subscription (49%) is down from 63% three years ago. Likewise, the growth of live TV streaming services has stagnated at around 40% for the past two years.
In addition to the rising cost of streaming, surveys and studies have continued to point to the increased use of ads as another major pain point for consumers. For example, a recent study by Tubi and The Harris Poll found that 79% of consumers now expect an ad-free viewing experience when paying for a streaming service.
The same study also found that Americans are paying around $129 each month on all of their streaming services (including paid TV subscriptions).
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