Americans Cutting Back on Streaming Services: Report

Thirty-nine percent of Americans queried have decreased entertainment — especially streaming services — as “tariff-driven economic pressures” increase, according to a report from research firms Reach3 Insights and Rival Technologies.
Streaming has taken a big hit — the report says 60% of research respondents say they have changed their streaming habits in the past six months. Among those who reduced their entertainment spending, 46% canceled at least one streaming subscription. The leading provider among that at least temporarily smaller pie is Netflix, which was seen as most essential by 68% of respondents.
The ongoing research also found that spending was cut back on visits to the theater (43%) and live events (39%). Drivers are rising everyday costs — cited by 62% of respondents — and the need to cut back on all categories at 44%.
The report says users are curtailing their use of streaming in a variety of ways. The top three strategies are moving to ad-supported tiers (24%), moving to ad-supported or free apps (32%), or only subscribing when specific shows are available (21%).
“Entertainment has always been resilient, but right now consumers are drawing sharper lines between what’s essential and what’s nice-to-have,” said Matt Kleinschmit, CEO of Reach3 Insights.
“For media companies, content producers and service providers alike, the key is listening closely to their audiences and using modern in-the-moment consumer insight techniques to get below the surface and truly understand what will make their offerings feel indispensable in people’s daily lives.”
Americans pretty much agree on the essential service. Eighty-six percent name the internet service, 6% say movie theaters, and 9% cite live events. YouTube made both nice-to-have (44%) and essential (36%) lists. Paid streaming are also on both lists in the report (41% and 35% respectively).
Netflix more than doubles the second most important service, which is Hulu at 33%. It is followed by Prime Video (25%), Peacock (13%), Disney Plus (9%), and HBO Max (8%).