Streaming services like Netflix, once hailed as budget-friendly cable alternatives, are now grappling with the same pricing pressures that plagued traditional TV, as U.S. subscribers face a 13% year-over-year cost hike, according to Deloitte’s 19th annual Digital Media Trends report released on this week. The survey of 3,595 consumers aged 14 and older, conducted in October 2024, reveals that Americans now pay $69 monthly for an average of four streaming services—still below cable TV’s $147 average. With 47% of respondents feeling they overpay and 41% (up 5% from 2024) saying content isn’t worth the price, streamers risk alienating younger viewers, 60% of whom would cancel if their favorite service hiked fees by $5.
The good news for cord cutters is that they are still paying less than half what cable TV subscribers pay and recently they have been cutting back. A recent survey of over 1,700 cord cutters news readers show that the average cord cutter now pays for just 3 streaming services.
This report paints a stark picture: subscription video-on-demand (SVOD) prices have climbed to $16 monthly on average, but consumers peg $14 as the “right” ad-free price—$25 is deemed too high. Ad-supported tiers, averaging $9, are ideally $10, with $19 as the ceiling. “Streamers are hitting a pricing wall,” says Deloitte analyst Jana Arbanas, noting 39% of users canceled an SVOD in the last six months—over 50% for Gen Zs and millennials. Churn-and-return rates hold steady at 24% overall (40% Gen Z, 35% millennials), while 54% of subscribers now use at least one ad-tier, up from 46% last year. “Younger gens are opting for cheaper or free options,” Arbanas adds, as FanDuel Sports Network boosts MLB streams and Truth+ hits Roku.
Younger viewers are also drifting from traditional TV—56% of Gen Zs and 43% of millennials find social media content more relevant, spending 50 minutes more daily on platforms like TikTok (Gen Zs: 54% more time than average). About 29% overall (49% Gen Zs, 40% millennials) want TV shows starring online creators, though 30% feel creators lose authenticity on TV.
The question now is what is the breaking point. TV viewers have already once ditched high cost services for cheaper options. Now, in 2025, we are seeing that happen again as Americans are cutting back on the number of streaming services they pay for and moving to ad-supported free options.
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