With SVOD prices rising steadily over the past two years — slowly at first, then seemingly overnight — the question arises to what extent streamers can increase their monthly fees without triggering a mass wave of subscription cancellations.
Why streaming services are getting SO EXPENSIVE!
User churn is undoubtedly increasing. Analytics firm Antenna estimates that 140.5 million subscription cancellations will occur in the US alone in 2023, up 35% from 2022. However, subscriptions are still being added at a higher rate than cancellations. For the millions of consumers who have canceled their subscriptions, streaming is likely no longer their primary source of entertainment.
New research shows that streamers may still have room to increase their prices further.
A recent study from the Boston Consulting Group found that the average American household spent $12 less per month on streaming last year than the maximum they said they were willing to spend. The average ceiling among respondents was $47 per month, while their average actual monthly spend was $35.
