A recent research report from Bango PLC (AIM: BGO, OTCQX: BGOPF), a company specializing in subscription economy insights, reveals a telling story about how Americans are managing rising costs associated with streaming subscriptions. The study, the “Streaming Squeeze”, found that about a third of U.S. streamers (34%) admit to cutting back on other household expenses just to keep paying for their streaming services. This highlights the pressure on family budgets as inflation tightens its grip on everyday spending. Nearly two-thirds (63%) say they cannot afford all the streaming services they want, and more than half (55%) say their streaming bills are higher than they would like.
For many, streaming has become non-negotiable entertainment. Services like Netflix often remain a “forever subscription,” despite household adjustments elsewhere. These choices underscore a broader trend where consumers are rebalancing priorities in an environment of both rising prices and abundant entertainment options.
The report points to some adaptive behavior among subscribers to cope with rising costs. While a majority say paid subscriptions should not run ads, many are willing to tolerate more ads if it means a significant discount. This indicates a tension between consumer expectations and financial realities. Ad-supported tiers of streaming services have gained ground, with 42% of users migrating to cheaper ad-supported plans and 39% upgrading to ad-free tiers to avoid ads altogether.
Bundling has also gained popularity, especially among younger consumers. About 22% of subscribers have switched to bundle deals in the past six months, combining services through telecom providers, retail platforms like Amazon Prime, or other consolidated offers. Bundling offers not only cost savings but a more manageable way to handle multiple subscriptions as the average U.S. consumer now subscribes to more than five paid streaming services.
The backdrop to this streaming squeeze is the broader economic environment in the U.S. Inflation has recently hovered around 4% in 2025, maintaining pressure on household budgets across essential and discretionary spending categories. Streaming service prices have increased even faster than inflation. On average, streaming prices saw increases of around 12% this year, outpacing inflation and forcing subscribers to reassess how much they can spend on entertainment within their overall budget.
This rising cost dynamic challenges the sustainability of high subscription counts for many households, contributing to the trend of cutting other expenses and increasing adoption of ad-supported or bundled options as a form of financial triage.
The Bango report suggests a shifting landscape where flexibility and choice become crucial for streaming companies aiming to retain customers. Instead of simply expanding content libraries, services are focusing on productizing choice with flexible ad tiers and bundling opportunities that reflect the complex financial trade-offs consumers face.
For consumers, streaming remains essential but increasingly subject to hard choices. As inflation continues to influence wallet decisions, understanding the trade-offs between price, convenience, and content will become even more important. The report shows subscribers will “keep spending” but with a sharper eye on value and budget impact. They tolerate ads or switch plans, cut costs elsewhere, and lean into bundles to maintain access to the services they prioritize m
