Is Netflix a necessity? Is Spotify? Some people seem to think so.
A study by the National Research Group finds that about two-thirds of consumers are ready to cut back on spending because of sky-high inflation.
But only a quarter or so say they’ll cancel their subscriptions to top streaming services.
Instead, the study found consumers are more willing to cut back on groceries, dining out and new clothes.
People estimate they spend an average $135 a month — 18% of their monthly budget — on subscriptions.
“What are they least likely to cancel?” the National Research Group asked. “Amazon Prime, TV and movie streaming services, and home security systems. The most vulnerable subscriptions? Dating apps, personal efficiency apps and beauty boxes.”
Among other tidbits from the study:
- About a quarter of consumers admit to password sharing to view streaming services they don’t subscribe to.
- Most consumers would be reluctant to spend more than $10 a month for a streaming service with ads.
- More than half of people say they test out streaming services with free trials, and about three-quarters acknowledge getting billed because they forgot to cancel.
The pandemic changed our entertainment consumption, perhaps forever. Streaming services are now the bedrock of how many of us keep ourselves amused.
Does that make them necessities? No.
But they’re no longer luxuries.
Oh, and keep track of your free trials. The various services are counting on you spacing out when it comes to canceling.