With streaming platforms multiplying and prices rising, consumers are beginning to feel the strain of oversubscriptions. photo courtesy of Getty Images
Rising costs and countless options of streaming services have left viewers overwhelmed.
Streaming services once promised a cost effective, convenient alternative to traditional cable. However, the current market has become saturated, with rising costs and more subscriptions causing consumers to become tired of subscribing. This shift has led many to question whether the streaming model has become unsustainable.
In the early days, Netflix stood as the primary streaming option. Today, consumers navigate through multiple services like Hulu, Disney+, Max, Peacock, Prime, and more. Each platform offers its own exclusive content, incentivising customers to subscribe to multiple services for all of their desired shows and movies. The proliferation of platforms has caused problems within the consumer market.
According to the Deloittes Digital Media Trends report, the average household subscribes to four streaming services, averaging about $70 a month. This is an increase from previous years, approaching the average month of traditional cable, $125, closing the price gap between the two options.
The growth of choices between services has led to decision stress for consumers. A survey by the New York Times showed that Americans spend an average of 110 hours per year, almost five days, deciding on what to watch. This overwhelming spread of options forces users to rewatch content instead of exploring new media. Additionally, the constant introduction of new streaming platforms and exclusive content has led to a phenomenon known as “streaming fatigue,” where consumers express frustration over the need to juggle multiple subscriptions and their growing costs. A Forbes Tech Survey found that 47% of respondents feel they pay too much for their streaming services, and 41% think it’s not worth the price.
In response to consumer dissatisfaction, some companies have begun to build new plans to revisit bundling services. Comcast’s Xfinity StreamSaver, for instance, offers consumers three different existing streaming services with ads, for a monthly payment. Similarly, Disney, Hulu, and Max introduced packages to reduce costs for consumers.
A prime example of the evolving streaming landscape is Amazon’s sudden move into live sports. In 2021, Amazon paid over $1 billion per year for exclusive rights to stream Thursday Night Football on Prime Video, becoming the first streaming-only service to carry an NFL exclusive broadcast package. This move not only signaled a change in sports, but also added another layer of stress for consumers—now if you want to watch key games, you have to subscribe to another platform. This highlights how streaming isn’t just for entertainment but a fight for must-watch events and entertainment.
As streaming continues to evolve, viewers are being asked to adapt, but many are reaching their limit. The model that one promised simplicity and price consciousness is becoming nearly as complicated and expensive as the cable options it sought to replace. With wallets thinning, the industry may need to soon change again, shifting to new options where quality and quantity are the same.