A survey highlighted in Deloitte’s 19th annual "Digital Media Trends" report, published on Wednesday reveals growing consumer dissatisfaction with streaming services in the United States. The study, covered by outlets like TV Technology, shows that nearly half of the surveyed consumers (47%) feel they pay too much for their streaming subscriptions, while 41% believe the content offered isn’t worth the cost—a 5% increase from 2024. This marks a shift from the early excitement surrounding streaming, signaling that the industry may be reaching a tipping point where it risks losing younger viewers, particularly Gen Z and millennials, unless it adapts.
The survey points to several pain points driving this frustration.
A significant 60% of respondents indicated they would cancel their favorite service if prices rose by just $5, reflecting heightened sensitivity to price hikes after years of increases outpacing inflation. For context, the average cost of ad-free subscription video-on-demand (SVOD) services has climbed to $16 per month, pushing consumers toward cheaper alternatives. Over two-thirds of Gen Zs and millennials now use free ad-supported TV (FAST) services, and 54% of SVOD subscribers have at least one ad-supported plan, up 8% from the previous year.
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| Consumers spend about 6 hours with media and entertainment, varies with generation |
Beyond cost, the survey underscores a shift in viewing habits. Younger generations are increasingly drawn to social platforms, with 56% of Gen Zs and 43% of millennials finding social media content more relevant than traditional TV shows or movies. About half of these groups also feel a stronger connection to social media creators than to conventional TV personalities, suggesting that streaming services are competing not just with each other but with entirely different entertainment ecosystems. This trend is amplified by the growing influence of the creator economy, which is reshaping audience loyalty in ways traditional media struggles to match.
Deloitte’s findings suggest that media and entertainment companies need to innovate to restore perceived value—whether through personalized content, better use of technology, or new monetization strategies—or risk alienating the next generation of viewers.
The survey paints a picture of an industry at a crossroads, where rising costs and shifting preferences are fueling consumer discontent, pushing providers to rethink how they deliver entertainment in a crowded and evolving market.
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