As inflation sinks in its claws around the world, some households are looking to economize by dropping streaming services that surged in popularity during the pandemic.
In Britain, where inflation hit a 30-year high last month, consumers are abandoning Netflix, Disney+ and other streaming services as they shift their financial priorities, according to a new report from the consulting firm Kantar.
Roughly 1.5 million British streaming subscriptions went ta-ta in the first quarter. About 38% of consumers there say they’ll be axing services in the current quarter.
“Households are starting to seriously prioritize where and how their disposable income is spent,” the report says.
Anecdotally, it seems Americans are following a similar pattern. But the Kantar report sends a very real shot across the bow of U.S. streaming services. The Covid gravy train may be slowing down.
This could have serious financial repercussions for the entertainment conglomerates, which are investing ever-increasing sums into development of original content seen as a crucial selling point in attracting subscribers.
If subscriber growth slows or even comes to a halt, that would be a huge red flag to investors, who probably wouldn’t hesitate to move their money elsewhere.
It’s a trend playing out across various media industries. How many subscriptions does the typical household need when it comes to streaming video, music, newspapers and other services with monthly fees?
Until now, Nielsen and other market mavens have estimated that most homes would keep three or four streaming services.
But as costs for food, gas and other necessities continue to skyrocket, consumers are increasingly searching for ways to make their dollars go farther.
Fewer subscriptions seems to be an easy and effective move for accomplishing that.
My advice: If you’re considering cutbacks, think about subscribing to only one or two streaming services at a time.
Watch everything you want, then cancel and sign up for a different service. Repeat.
Since there are no contracts involved, this is a smart way to stay entertained without paying for everything all at once.