Inflation Inspired 20 Percent of Consumers to Cancel a Streaming Service This Year, Survey Says
With few things certain in life, streaming services like Netflix, Disney+, and Prime Video will never fail to increase prices each year. Statistically, these price hikes have a minimal effect on subscription numbers — but inflation could change all that.
According to a c0nsumer survey published by accounting firm KPMG, 20 percent of respondents say inflation has already inspired them to cancel at least one streaming service. And if inflation continues at its current rate, 37 percent of respondents said they plan to drop one or all of their streaming subscriptions. (What will they do with themselves?)
Another 24 percent said that while they feel the impact of inflation, they don’t plan to change their streaming services. Finally, 19 percent said inflation had no impact on their streaming habits.
KPMG conducted the survey online in June this year, with more than 1,000 people providing responses. Respondents ranged from 18 to 76 years old, with about 250 representatives each for the baby boomer, Gen X, millennial and Gen Z age groups. Of all respondents, 929 had access to streaming services.
The study found that price was the most common complaint consumers had regarding streaming services, by a large margin. According to 37 percent of respondents, more than any other change they wanted to see the cost of services go down. In addition, 14 percent of respondents said they would like to see more bundling options in order to have fewer subscriptions to manage.
“With persistent inflation combined with rising streaming fees, consumer loyalty will be put to the test,” Scott Purdy, national media industry leader for KPMG, said in a statement. “Providers should be thinking outside of content and how they can make their services ‘stickier,’ for example, offering bundles or tie-ins.”
That said, the survey also found that 31 percent of respondents did not plan to change their subscriptions this year and their monthly spends would likely remain the same. About 25 percent plan to add additional services to their monthly charges; 27 percent of respondents said they expect streaming pricesto rise this year.
The survey also examined the practice of password sharing. Despite efforts by streamers like Netflix to crack down, it’s believed that around 100 million households worldwide use shared passwords, including 30 million in North America. However, only 15 percent of respondents admitted to password sharing outside their households and 47 percent said they would pay for a service they currently utilize with a shared password.
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