Are You Getting Ripped Off by Your Monthly Streaming Bill?
Streaming subscriptions are draining wallets
Netflix’s stranglehold on streaming is loosening. A recent TV fan survey shows that nearly 80% of Americans now subscribe to two or more streaming services, and 22% are juggling five or more.
The result? Monthly streaming bills that look a lot more like the bulky cable packages cord-cutters have been so eager to escape over the past 15 years.
In fact, the average American now spends about $20–$60 per month on streaming, which is still $40–$80 less than traditional cable packages. But for a technology that launched on the promise of affordable à la carte entertainment, the cost raises some eyebrows.
I’ll walk you through some common streaming money pits and offer solutions to help you avoid overspending on streaming.
Are you paying too much for streaming?
According to our annual streaming pricing trend report, monthly subscription prices are up across the board and outpacing inflation in most cases. So, it’s not all that shocking that 43% of Americans feel they’re overspending on streaming, and that the higher monthly costs no longer match the value.
And dissatisfaction is directly converting into cancellations, as 35% of Americans dropped at least one service in the past year, with 43% of those citing high cost as their primary reason for dropping streamers.
So, what is a TV fan to do? First things first: Identify all your streaming subscriptions, then take a moment to understand how often you use each one.
Once you’ve performed your low-key audit, cancel the services that you rarely, if ever, use. The one enduring advantage of streaming is the month-to-month contracts, so you can always cancel and then sign up when you can’t miss a show or sport.
CableTV.com savings tip: You don’t have to be serious about canceling your subscriptions; sometimes a well-timed threat can get you the savings you want. Here’s a sampling of streaming cancellation discounts we’ve seen here at CableTV.com.
Are you sure you canceled your free streaming trial?
The streaming industry’s favorite growth hack, free trials, has a dark side. Nearly half of all Americans (48%) have been charged after forgetting to cancel a free trial subscription. And for another 22% of us, it’s happened more than once.
The financial impact of this pattern is real: Nearly 10% of folks who were charged have lost more than $100 to forgotten subscriptions. For platforms, that’s passive revenue. For consumers, that’s a night or two out on the town or two new pairs of shoes.
Again, a simple audit of your bank and/or credit card statement should help you track down these ghost charges. Once you get ’em in your sights (since they’re monthly charges, a quick scan of your statement will tell you everything you need to know), cancel ’em and recoup some savings.
CableTV.com savings tip: Whoops! I forgot to cancel Criterion Channel again!? Shoot. If you’re like me, sometimes you may conveniently forget to cancel one of your favorite streaming apps (don’t tell my partner), but you can still save by signing up for an annual subscription.
What’s more, when I sign up for a free trial, I usually create a Google Calendar event and set up an email notification to cancel any free trials or new subscriptions before they hit my checkbook.
Do you use free streaming apps?
As costs continue to pile up, the appeal of free ad-supported streaming television (FAST) and ad-supported plans has shifted from a fallback entertainment option to a genuine alternative. A striking 82% of Americans are open to downgrading to a lower-priced, ad-supported tier to cut costs. Not surprisingly, 49% of consumers cite saving money as their main motivation for considering the switch.
For most streaming services trying to retain premium subscribers, that’s a direct competitive threat worth taking seriously. But more importantly for TV fans like you, FAST services have greatly improved their libraries and user interfaces (UI) over the past five years, so why wouldn’t you switch to multiple FAST services and save hundreds a year? Are ads really that intolerable?
CableTV.com savings tip: Students can save even more on their monthly streaming subs (and maybe even let you sneak a streaming profile on the sly) with one of the many student streaming discounts out there.
For more surprising streaming stats, check out CableTV.com’s full survey. To stop overspending on monthly subscriptions, scroll through the monthly streaming deals we’ve collected and vetted from all over the interwebs.
Streaming overspending FAQ
How many streaming services does the average American subscribe to?
80% subscribe to two or more services, and 22% pay for five or more simultaneously.
Why are so many people canceling streaming services?
High cost is the top driver. Of the 35% of Americans who canceled at least one service in the past year, 43% cited price as their primary reason.
How common are accidental streaming charges?
Very common. Forty-seven percent of Americans have been charged after forgetting to cancel a free trial, and 22% have experienced it more than once.
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