Saving money has become a priority for some families. And to minimise expenses, Americans aren’t hesitating to cut back on entertainment-related outgoings, with video streaming services now being viewed as a target for future savings, according to Morning Consult research.
Inflation may be falling, but it's still a concern for households, and consumers are increasingly cautious about spending on entertainment. Recent research by Morning Consult, conducted among 2,203 US adults from March 2 to 4, 2024, reveals that while one-off entertainment purchases, such as movie tickets and books, were the first to be cut, recurring subscriptions, such as those to video streaming services, could be next in line.
More than three in five consumers (64%) subscribing to at least five video streaming services consider it important to reduce their spending in this area over the coming year, a proportion significantly higher than the national average, by 13 points, Morning Consult reports.
Recently, streaming platforms such as Netflix and Disney have announced subscription price hikes and measures to curb the sharing of account passwords. A situation that is all the more worrying for streaming platforms when, for a third of Americans, SVOD platform content catalogs aren't worth the price.
The research reveals that a quarter of US adults surveyed said they had cut spending on internet and mobile plans in the last 12 months, as well as various subscription services such as cable or satellite TV (24%) and music streaming subscriptions (23%). Meanwhile, nearly a third (31%) went to the movies less, and 28% bought fewer books. When it comes to video games, Americans report reduced spending on both one-off purchases and subscriptions (20%).
The Morning Consult report suggests that persistent high inflation in service categories such as rent and car insurance continues to constrain household budgets, forcing people to reconsider their discretionary spending, including on entertainment.
As Americans look to balance their budgets, it's clear that recurring subscriptions, once seen as a bargain, could become the next area where budget cuts will be made, due to rising costs and increased usage restrictions. – AFP Relaxnews
