A new study conducted by Reviews.org has revealed that the average American household spends approximately $3,400 a year on a combination of internet, phone, streaming, and cable TV plans. Over a 60-year period, this equates to an eye-watering $203,803. The breakdown showed that households spend around $975 per year on internet, $793 on mobile plans, $660 on streaming services, and $962 on cable TV.
Interestingly, the cost of internet alone over this period was found to be $59,000. With this in mind, it is not hard to believe that it would now cost households over $120 per month to subscribe to all nine of the leading streaming services. This price hike has taken place over the last year, with the vast majority of services increasing their prices significantly. In January 2023, a household could subscribe to all nine services for just over $100 per month.
Apple TV+ and Disney+ were among the most significant price-hikers over the past year. The ad-free tier of Apple TV+ increased by a staggering 43%, rising from $6.99 to $9.99. At the same time, Disney+ increased its price offering by 27%, meaning that it now costs $13.99 per month, up from $10.99. However, it seems that many Americans have grown weary of the price hikes, as the rate of cancellations of streaming services is at a record high.
A typical household subscribes to just a few streamers now, with the number of subscriptions per household significantly decreasing over the last year. This change is likely to be a response to the proliferation of available streaming services, which can be overwhelming and costly. It is unsurprising that households are re-evaluating the value of their subscriptions, given that it would cost over $120 per month to subscribe to ad-free plans with Netflix, Amazon Prime Video, Max, Peacock, Paramount+, Apple TV+, Disney+, Hulu, and Britbox.
As the competition in the sector continues to grow, it is likely that many households will continue to scale back their subscriptions, focusing instead on just a few key services.
With the average American household spending more than $200,000 over their lifetime on media, it is unsurprising that price hikes in the sector are leading some to reconsider their streaming habits. While streaming is here to stay, it seems that households are increasingly looking for ways to limit their overheads in this costly area.
