“Switched Off”: Streaming Service Cancellations Rise as ‘Streamflation’ Bites
The point behind ‘cord-cutting’ was to enjoy premium content and movies through streaming platforms like Hulu, Netflix, Disney+, and AppleTV+, among others, to skip the middleman (big cable) and save money.
However, streaming companies got too greedy in 2023. They increased monthly subscriptions to improve ‘profitability’ and have triggered the beginnings of what appears to be a cancellation wave.
A new report from The Wall Street Journal cites data from subscription analytics provider Antenna that shows customer defections across streaming services topped 6.3% in November, up from 5.1% a year earlier.
Antenna said about one-quarter of US subscribers to these major platforms, also including Discovery+, Max, Paramount+, Peacock, and Starz, have canceled at least three subscriptions in the past two years.
This comes as ‘streamflation’ hits consumers’ wallets.
“With the streaming services increasing their rates like they are, it’s, like, ‘OK, do I pay for the cable?'” said one person who spoke with WSJ.
Some folks have downgraded plans of major streaming services for more ads and limiting the number of devices:
More than one-third of new US Netflix customers in November opted for the ad tier, compared with 11% a year earlier, when the ad-supported version was introduced. Streamers say ad-supported plans are a win-win for them and price-sensitive customers, bringing in revenue from monthly subscriptions as well as ad sales.
Antenna said some customers who canceled streaming services return later:
One in four people who cancel a premium streaming service typically resubscribes to that service within four months, and one in three does so within seven months. Half do so within two years.
