By the end of 2024, domestic spending on streaming services collapsed from an average of $55.04 per month to just $42.38.
That is a stunning drop of 23 percent over just one year.
You would think that as millions cancel their insanely expensive cable packages every year, the amount spent on streaming would increase. After all, as of 2022, suckers people are paying an average of around $220 a month for cable.
If you cancel your cable and spend $100 per month on streaming services, that’s still a big savings. Only that’s not what’s happening.
Instead, what’s happening is awesome… The villains in Hollywood are losing millions of customers paying $220 a month. At the same time, these same villains lost almost a quarter of their streaming revenue.
Couldn’t happen to a nicer bunch of people who hate us.
So why is this happening?
Here’s The Wrap’s explanation:
Americans are experiencing “streaming fatigue,” which … defines as “that exact feeling of being overwhelmed with the increasing number of streaming apps.” … Another potential reason … is because many of them are spending more on cable and satellite … up 11% from last year. … The decline in streaming spending comes as ad-supported streaming hit a record high in 2024. A record 43% of streaming subscriptions were ad-supported by the end of Q3[.]
Here are some other explanations:
Cost of Living: With prices going up on many things, people are cutting back on extra costs like streaming.
Subscription Choices: People are choosing fewer subscriptions. They pick only the services they use the most.
I would add two additional reasons…. First, there is the amount of free streaming available today, and much of it is high quality. Ad-supported streaming subscriptions might be cheaper, but free is free, and between outlets like Pluto, FreeVee, Roku TV, YouTube, and Tubi (the tip of the free streaming iceberg), there is so much free content out there, it’s like attempting to drink out of a fire hose.
The second reason I would add is lousy content or bang for the buck. Other than Amazon Prime for the free shipping, my wife and I subscribe to exactly zero streaming services. For example, with Netflix, we were spending $15 a month to endlessly search the menu every night to find nothing to watch. When we did watch something, it was to feel like we were getting our money’s worth—which is a dumb reason. We had Netflix for a decade, and I cannot think of a single movie or show that I’d want to see again.
Meanwhile, if you pay for high-speed internet and purchase a $50 Roku Player, there is all kinds of great movies and TV shows available for free. You won’t have access to the newer shows, but if you wait a year or two, shows like Yellowstone and the Walking Dead appear on these free apps.
Hollywood is spending tens of billions per year on content, and for whatever reason you choose, we’re just not watching.
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