Consumers in the United States are now spending an average of $70 each month on subscription video streaming services, a notable rise from $48 a year earlier. This $22 increase, reported by consulting firm Deloitte in their October 2025 Digital Media Trends report, marks a significant shift in how U.S. households allocate their entertainment budgets. This shift comes amid a wave of price hikes from major streaming platforms as they respond to rising production, marketing, and operational costs.
On the surface, streaming was once considered a more affordable alternative to conventional cable or satellite TV. Cable and satellite subscribers typically pay around $125 monthly, which remains substantially higher than the now $70 streaming average. However, the perceived value of streaming services is starting to wane for many consumers. Deloitte’s survey reveals that 47% of U.S. consumers feel they are paying too much for the services they subscribe to, and 41% believe the available content does not justify the price. This dissonance is stirring frustration for nearly 70% of subscribers who report dissatisfaction with ongoing price increases.
The increased cost has influenced consumer behavior profoundly. About one-third of households recently cut back on their streaming subscriptions in the past three months, citing financial pressures as a key reason. This wave of cancellations reflects a sensitivity to price hikes that weighs heavily on smaller or niche streaming providers, which may lack the pricing power of industry leaders. These bigger platforms, however, have managed to maintain subscriber numbers even as they introduced higher fees, thanks partly to offering multiple service tiers including ad-supported options to appeal to various budget levels.
A typical U.S. household with streaming subscriptions pays for around four services on average, and this number has held fairly steady despite price increases. Streaming services now face a balancing act between finding the right price point and maintaining or growing their subscriber base. Deloitte’s report finds that many consumers see $14 per month as the sweet spot for ad-free streaming, with anything over $25 considered too expensive. For ad-supported tiers, $10 per month is preferred, slightly above current average pricing, but charges exceeding $19 are viewed as excessive.
This pricing sensitivity has fueled adoption of ad-supported video on demand (AVOD) services, which grew by over 10% in households adopting these options in the last six months. Streaming business models, traditionally direct-to-consumer subscription video on demand (SVOD), are evolving, comfortable blending with advertising-supported models to retain value-conscious consumers. More than half of SVOD subscribers now pay for at least one ad-supported service.
In addition to rising subscription fees, consumers are increasingly searching for value in bundled offerings that combine several services, often across entertainment and news, providing a way to manage costs while maintaining access to premium content. Bundling helps reduce the churn rate, which remains high at around 39% of consumers canceling a streaming service in the last six months, according to Deloitte. These bundles create perceived savings and simplify subscription management, making cutting back on streaming a more deliberate decision.
The streaming landscape continues to shift under these economic and behavioral pressures. Companies face the challenge of justifying price hikes with enough quality content, innovation in user experience, and flexible pricing approaches to avoid alienating their audiences. The interplay between rising costs and customer’s expectations for value will likely shape the trajectory of the U.S. streaming market in the near term.
Streaming services have grown from a niche alternative into a dominant pillar of household entertainment, but the growing monthly cost and churn demonstrate that consumers remain price sensitive and willing to adjust behavior. As budgets tighten and content offerings expand, the evolution of streaming economics will demand constant adaptation from providers and careful choices from consumers.Â
