How To Tell Whether Streaming Services Are Worth the Price Hike
When your favorite streaming services take a hike by a couple dollars every year or so, it might not seem like that big a deal. However, when you multiply that across multiple platforms, that monthly expense can add up to hundreds of dollars every year.
While most people will suck it up for the streaming services they love best, it's worth taking a closer look at which ones aren't worth that.
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Consider the Hidden Cost of 'Small' Price Increases
Small monthly payments may seem harmless, but when you add them together, they become a big expense, said Kevin Marshall, certified public accountant (CPA) and personal finance professional at Amortization Calculator. He said he regularly sees this pattern when reviewing family budgets. The problem is that when prices go up, like recently happened at Netflix and Disney+, "many people do not notice how much they are really spending."
Aveline Lowell, business and finance strategist and cofounder at RiseByHer.com, agreed, calling streaming subscriptions a classic example of "small leaks in one's budget." Across her clients, "the typical U.S. household now spends $85 to $95 per month on streaming," up 15% to 20% from two years ago.
Calculate Value Based on Usage
Before automatically accepting a higher price, both experts recommended calculating value based on actual usage.
Marshall asks his clients to assess how many hours they really watch each month then divide the monthly price by hours viewed. "If you pay $11.99 and watch less than ten hours a month, it is probably not worth it. A good rule is at least 15 hours per month for one person. For families, it should be around 25 hours total."
He also recommended a budget test: "If streaming costs more than 5% of your entertainment budget, it is time to rethink it."
Lowell suggested a similar evaluation. Consumers should ask whether the service reflects real priorities or is simply a "creeping monthly expense."
Services with the least value per dollar, she added, often include "niche platforms with small libraries," "bundled channels rarely watched," and "services subscribed to for only one show."
Compare Ad-Supported vs. Premium
One of the easiest ways to offset a price hike is to downgrade tiers. Ad-supported plans can save 20% to 30% each month.
Lowell said premium tiers are generally justified only when viewers need features such as offline downloads, multiple profiles or early access to releases.
For instance, switching from Netflix's ad-free tier to the ad-supported version saved a client $7 per month while allowing access to the same content.
Consider Whether Annual Plans and Bundles Will Backfire
Paying annually can appear cheaper on paper. But it only works if you actually use the service all year.
Marshall pointed out that if you cancel early, "your yearly subscription isn't refundable and you won't have paid enough to make it worthwhile in retrospect." Canceling early or letting months go unused negates the savings.
Adopt a Smart Rotation Strategy
Instead of keeping every platform year-round, both experts recommend rotating subscriptions.
Marshall advised reviewing subscriptions every three months and checking viewing history. "If you don't use a particular service for a month, you probably do not need it."
Lowell added that it could help to treat streaming "like any recurring expense, not a fun money afterthought."
Ultimately, she said, "the key is intentionality. Each subscription should serve a clear purpose and align with household entertainment priorities. Anything else is wasted spend."
Or, as Marshall put it, "If you do not know what you are spending, you are probably spending too much."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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