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With inflation on the rise in the United States, many Americans are reevaluating the number of subscription services they pay for. The Consumer Price Index, which serves as a benchmark for measuring inflation, has increased by 3.2% compared to the previous year, with a 0.2% rise in July.

Even streaming services are not exempt from this trend, as many have raised their prices to account for higher costs. Peacock and Paramount+ have increased their prices from .99 to .99, while Disney+ plans to raise its prices to .99. Hulu’s prices have risen to .99, and Netflix now costs .49 per month. The most expensive streaming platform is Max, which costs .99 per month.

While overall inflation has increased significantly in the past two years, housing, groceries, and car insurance rates have experienced the largest increases. In addition, cable and streaming service costs have also gone up. As a result, many individuals are not only canceling their cable subscriptions but also reducing the number of streaming services they subscribe to.

According to a report by Aluma Connected Media Insights, 35% of streaming subscribers are now considering cutting back on the number of services they pay for. This percentage has increased from 25% in 2022. This mindset is fueled by the availability of free ad-supported streaming options like Tubi and Pluto, which allow viewers to access content without monthly subscription fees. If these free options offer similar content, it can motivate more people to cancel their paid streaming subscriptions.

To combat membership losses, several paid streaming platforms are offering bundle packages to provide customers with more value for their money. For example, Disney+ offers bundles that include Hulu and ESPN, while Spotify Premium members also receive Hulu with their subscription. Verizon’s +Play bundle includes Netflix, Paramount+, and Showtime.

As inflation continues to affect Americans’ wallets, the streaming industry is adapting to retain customers and offer more cost-effective options through bundled services and the availability of free streaming platforms.

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