Americans have slashed spending on restaurants, travel and live entertainment. But we’re spending more on subscription services — especially video-streaming subscriptions.
Since the pandemic hit the U.S., nearly 10% of consumers have both added and canceled at least one paid video-streaming service, according to a survey by Deloitte, suggesting that more churn is in store as consumers seek more value. And as more media providers join the fray — including Disney+, Apple TV+ and HBO Max — competition is growing and putting pressure on providers to expand content and reduce prices.
With so many streaming choices, it’s tempting to load up on subscriptions — but the cost can quickly add up. If you already have a few streaming services, consider canceling the ones that you use the least. You can always re-subscribe when a service releases new content or adds a feature that makes it more worthwhile. And with the pandemic pressing pause on many sports, you may not need to subscribe to a live TV service if you originally signed up primarily to watch games. A digital antenna may be all you need for access to local channels.
Sharing subscriptions is another way to save. Some services make this easier than others — the Netflix premium plan (which allows four simultaneous log-ons) and Hulu (with the $9.99-per-month unlimited screens add-on) are particularly family-and-friends friendly.
If you want access to a single show, you may be better off paying per view than subscribing to a service. For example, an HBO Max subscription costs $14.99 per month, but one episode of Game of Thrones on Amazon’s Prime Video costs $3.99 — or $24.99 for the entire season.
Bundling services is another way to trim costs, and the savings are even greater if you are willing to put up with some ads. The ad-free Hulu, Disney+ and ESPN+ bundle goes for $18.99 per month, but you can also do the same bundle with the ad-supported Hulu version for a monthly charge of $12.99.
Take advantage of free viewing, such as Peacock TV’s standard plan, as well as free trials. Netflix offers a 30-day trial, and most other services let you sign up free for a week. You can find longer free trials with certain services if you download them from a particular device or if you also subscribe to another related service.
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With AT&T TV Now, for instance, you can get a free trial of HBO Max for 30 days, rather than the standard seven days. And you can get a free year-long subscription to Apple TV+ with the purchase of an iPhone, iPad, iPod touch, Apple TV or Mac. Sprint includes Netflix subscriptions with some of its cell phone plans.
(Emma Patch is a staff writer at Kiplinger’s Personal Finance magazine. For more on this and similar money topics, visit Kiplinger.com.)
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