Keeping expenses low while streaming services rise: strategies for saving

Indianapolis, Indiana – The way we watch television has essentially transformed as a result of streaming apps, which are unparalleled in terms of ease, according to experts.

“It’s just a different watching habit for this generation,” said Russell Rhoads, associate clinical professor of Financial Management at IU Kelley School of Business.

Convenience, meanwhile, has a price these days, as many streaming services have raised their rates, citing factors including content expenses and profitability.

“They’re all public companies, and people invest in public companies for what they’re going to do. Not what they’ve done,” Rhoads said. “In order to continue to put up growth, you can either increase your subscribers or you can increase the price, which will increase your revenues at a pleasant pace and hopefully keep investors happy.”

“The issue with that, at this point, you’re going to reach a point where people start to discontinue using the services, sometimes just on principle,” he added.

In order to compare pricing between the current and initial launches of five well-known streaming services, we examined their typical “ad-free” tiers. When combined, those five services would now set customers back around $70, as opposed to somewhat less than $40 on the dates of their individual launches.

The price increases aren’t expected to cease anytime soon, according to experts.

Although consumers first perceived streaming as a more “cost-effective” choice, depending on your bundle, the overall cost of various providers may equal or exceed that of some cable packages.

“I don’t think a lot of individuals sit down and look at what their monthly entertainment bill is for what they’re bringing into the house that way,” said Rhoads. “If they start to do so, I think they may be surprised at how much they’re spending on it.”

There are methods to reduce costs and maximize your streaming experience even with the hikes. Start by carefully examining each of your services.

“Look to see if you’re paying for some in a hidden way,” said Andy Mattingly, chief operating officer at Forum Credit Union. “Maybe you added it to your Amazon Prime subscription, or you added it to your internet subscription or it’s part of your phone bill. So, you also need to see if you’re paying for some you don’t even realize you’re paying for.”

Ads are a great option if you want to “downsize” your streaming expenses. These options are frequently available on streaming services at a lower tier and at a reduced cost.

Meanwhile, free ad-supported streaming television (FAST) is a well-liked choice that is also growing in popularity. Kantar recently released statistics indicating that approximately 50% of American households utilize FAST platforms on a weekly basis, making it the nation’s “fastest-growing streaming tier.”

These streaming sites, such as Tubi and PlutoTV, offer a large selection of TV series and films with fewer commercials and don’t require a membership.

“It comes with the TVs that you purchase now. The most recent TV I purchased, I think it was a Roku, has a bunch of that stuff automatically built in,” Rhoads said. “You can turn it on and start watching things that are free, streaming-wise. They may not be that attractive to watch, but they’re there. They (FAST) may be a great alternative for individuals that are again looking at how they’re going to tighten their belts, and I do think 2024 is going to be a year that a lot of people do that,” he added.