Streaming Inflation: How Streaming Prices Have Changed Over the Years 2024

1. Live — Percent of income we need to live our lives; this includes fixed costs like utilities and food and variable items like vacations
2. Owe — How much we need to pay our debts, including principal, interest, and extra payments
3. Give — How much we gift to others, such as family, friends, and charity
4. Grow – How much we save

It’s best to start with the grow allocation so that we pay our future selves first. Target 10% to 20% of income. From there, we can calculate how much we wish to gift and our debt situation. This leaves us with an amount to live on.

When it comes to subscriptions, we need to monitor what we’re paying for, determine if we use it consistently, decide if we should cancel the service, and figure out if a new service is warranted. These services hope that we buy it and forget it. Complacency is part of their revenue plan. Keep a good list of subscriptions and evaluate it often! Cancel what is not used or valued.

To fit entertainment services, such as streaming, into people’s budgets without overspending, viewers can adopt several strategies. Digital media consumption has become integral to modern life due to the diversity, flexibility, convenience, accessibility, and cost-effectiveness of streaming services. The competitive nature of the streaming industry, with its month-by-month subscription model, allows consumers to choose from a variety of on-demand entertainment and live TV content, with and without ads.

As of early 2024, the average U.S. household spent between $30 and $40 per month on streaming services, typically subscribing to at least three platforms. This expenditure reflects a preference for uninterrupted viewing experiences, as ad-free services save viewers around 15 to 20 minutes of personal time daily. The music streaming sector has also seen rapid growth, with over 90 million paid subscribers in 2024. Popular music streaming services such as Spotify, Apple Music, and YouTube Music charge around $10.99 per month, while Amazon Music is slightly cheaper at $9.99 per month.

To manage entertainment service expenses effectively, individuals should establish a clear entertainment budget, reviewing it monthly to ensure that the streaming services they pay for are still justified. For instance, if a family plan is no longer necessary due to changes in household composition, downgrading to a smaller plan can save money. Another cost-saving strategy is to take advantage of free trials, binge-watch desired content, and then cancel the subscription before the trial period ends. However, it’s important to remember to cancel the subscription to avoid unintended charges.

Using a single credit card for all streaming services can simplify expense tracking. Additionally, opting for ad-supported versions of streaming services can reduce costs, as these versions are generally cheaper. Last year, people chased more free trial promotions, highlighting the importance of pricing and affordability, especially in the context of inflation.

Consumers can easily fit entertainment services by simply paying attention to their monthly expenditures and exercising emotional regulation. Every month, consumers are reminded that they’re paying for services for which they signed up.

It’s the consumer’s responsibility to assess whether the service they’re paying for monthly is providing them with the satisfaction they expected. If it’s not, then the consumer should cancel the service. This monthly assessment also alerts the consumer to any timely cost increases in these services. Thus, the consumer will not lose more money due to inattentiveness or lack of awareness.

Our financial institutions are always there to help us forget our monthly obligations with convenience services like automatic bill pay. Regardless of whether consumers use this service, the responsibility lies with them to monitor the amount of money entering and exiting their accounts monthly.

Likewise, consumers should always exercise emotional regulation in the form of impulse control and be cognizant of their needs versus their wants. Controlling purchasing behavior to only what is needed will reduce the tendency to overspend and reduce buyer’s remorse. Caveat emptor! Which is Latin for buyer beware. Or, as I like to say, buyer be aware!

In our household, we subscribe to a couple of newspapers, a slew of streaming services (Netflix, Prime, Max, Apple TV+), and no music services. We recently added Apple with the intention of watching a few shows and then will cancel it. I monitor these costs using my expense tracker on a monthly basis.

I cut the cord 20+ years ago because I didn’t like the contracts and cancellation fees associated with cable TV, and, most importantly, with streaming, I can watch what I want when I want.

I choose streaming services relevant to my interests and professional needs, such as documentaries, while conducting a cost-benefit analysis to assess if the subscription cost is justified by the quality, exclusivity, and cost of the subscription.

Ultimately, individuals must decide how to balance their needs, preferences, and costs. Evaluating the value of each service based on price, content library, and new releases is essential to ensure they’re getting the best value for their money.

I don’t subscribe to multiple streaming services. I don’t have to because, with any product for which I pay regularly, I assess the value it adds to my life each and every time I pay for it. If it still gives me the same joy as it did when I first purchased it, then I’ll continue to pay for it. If it doesn’t, then I don’t, and I cancel.

This mental activity takes seconds to do, and we usually know our answer immediately. I am always attentive to my spending and regularly aligning my purchases to my needs. I am a buyer who’s aware.