Over the last decade, many consumers have joined the 'cut the cord' club and switched from traditional cable TV to streaming services for entertainment. Due to that increased demand, streaming services have multiplied, forcing consumers to subscribe to numerous services to regain the coverage they previously had with cable.
The proliferation of streaming services is having a notable impact on family budgets. Initially perceived as a cost-effective alternative to traditional cable TV, streaming services now contribute to increased monthly entertainment expenses. As more platforms emerge, each offering exclusive content, families subscribe to multiple services to access a diverse range of shows and movies. This fragmentation means that what was once a strategy to save money is now leading to cumulative costs that rival or exceed traditional cable bills. Consequently, families face the challenge of balancing the desire for variety in entertainment with the need to manage their household budgets effectively.
Rising Costs
In addition to the expense of managing numerous streaming subscriptions, 2024 saw significant price increases for these services. According to MentalFloss.com, monthly subscription prices rose an average of 20 percent if you utilize all major streaming platforms, well above the inflation rate.
Netflix has increased its prices further in 2024, with its premium plan now costing nearly double its 2019 rates. Apple TV+ raised its rates again, marking a 55% increase over two years. Paramount+, Max, and Peacock also implemented double-digit percentage price hikes. As a result, households subscribing to multiple platforms are feeling the strain of these higher costs.
Strategies to Manage Streaming Expenses
1. Evaluating and Adjusting Subscriptions
The first step to managing your subscriptions is evaluating them. Write down each service you subscribe to and their cost. Then, take some time to think about how frequently you use each service.
For example, if you subscribe to Disney+, Netflix, Max, and Hulu, you may not need or use all four of them regularly. You might primarily use Netflix and Max and only occasionally use Hulu and Disney+. If that’s the case, consider keeping Netflix and Max while canceling Hulu and Disney+, potentially saving you hundreds each year.
Another approach is rotating subscriptions. For example, if Disney+ releases a new season of your favorite show in the spring, subscribe for those months and pause it the rest of the year. This method ensures you can enjoy your favorite content while minimizing costs.
2. Exploring Free and Ad-Supported Options
Consider free and ad-supported options to counter rising costs. Many platforms, including Hulu and Peacock, offer lower-cost plans with ads. While ads may not be ideal, these plans often provide substantial savings.
In addition, free streaming services such as Pluto TV, Tubi, Freevee, and Roku Channel offer extensive libraries of movies and TV shows. These platforms may not have the latest blockbusters but are excellent for budget-conscious viewers.
Your local library may also offer free streaming options like Kanopy or Hoopla Digital, providing access to high-quality films and educational content. Libraries often allow you to borrow DVDs, which can supplement your entertainment needs.
3. Looking for Deals and Bundles
Deals and bundles can help you save on streaming costs. For instance, T-Mobile offers Netflix and Apple TV+ as part of its wireless plans. Verizon provides Disney+ bundles with some of its internet plans.
Around Black Friday and other holidays, many streaming services offer discounted annual plans. These deals can significantly reduce your overall costs if you’re willing to pay upfront.
Takeaway
Rising costs for streaming services are a growing challenge, especially for households on tight budgets. However, managing these costs doesn’t mean giving up TV or movies entirely. By evaluating your subscriptions, exploring free or ad-supported options, and taking advantage of deals and bundles, you can enjoy your favorite content without breaking the bank.
Finally, if you’re paying for both cable TV and streaming services, consider choosing one or the other. Eliminating cable or reducing streaming subscriptions could result in substantial annual savings, helping you better manage your entertainment expenses.