Customers are canceling their streaming subscriptions at a higher rate compared to the previous year, as major streaming services such as Disney+, Netflix, and Hulu have raised their prices, according to a report. Defections across premium streamers rose 6.3% in November 2022, from 5.1% in the same period a year earlier, the Wall Street Journal reported on Tuesday.

The report, citing data from analytics firm Antenna, revealed that over the past two years, approximately 25% of subscribers to AppleTV+, Amazon's Prime Video, Max, Peacock, Paramount+, Netflix, Hulu, and Disney+ have canceled at least three of those options. This represents a notable increase from the pre-price hike period when only 15% canceled. The combined ad-free monthly costs for these eight streamers currently amount to $112.42, which has contributed to customer dissatisfaction and increased cancellations.

The rising cost of streaming services has left customers questioning the affordability of maintaining multiple subscriptions. Crystal Revis, a mother of six from Lynn Haven, Florida, admitted the struggle of balancing rising living costs and household expenses. She posed the question, "Do I pay for the cable?" and decided to cancel her subscriptions to Disney+ and Paramount+. However, Revis opted to keep Hulu as they offered her a six-month ad-supported subscription for $2.99 per month, significantly lower than the regular price of $7.99 per month.

In attempts to retain customers, streaming services have explored various strategies, including introducing lower-cost ad-supported tiers, collaborating with competitors on bundled deals, and providing discounts or free months of service. While these efforts have had some success, customers continue to downgrade services in order to manage their expenses. Beni Goldberg, a father of two from North Texas, cited downgrading his premium Netflix plan to a standard plan and canceling sports add-ons to his YouTube TV subscription during the off-season as cost-saving measures.

Data from Antenna suggests that many customers who cancel subscriptions eventually return when more appealing content becomes available. The introduction of lower-priced ad-supported plans has also been effective in attracting new customers and enticing former ones. The Wall Street Journal reported that nearly 60% of new US customers to Disney+ in November opted for the ad-supported tier, boosted by Black Friday promotions. Similarly, over one-third of new US customers at Netflix chose the ad-supported tier in November, marking a significant increase from the previous year.

In a bid to further entice customers, companies like Verizon have initiated bundle offers that include the ad-supported tiers of Netflix and Max for approximately $10 per month, instead of the usual $17. While bundling provides added value, customers are now evaluating whether the content provided by streaming services justifies the high costs of subscriptions.

Brendan Byrne, a father of four from the Boston area, expressed his concerns regarding the lack of content on multiple streaming platforms. He currently subscribes to Netflix, the Disney bundle (Disney+, ESPN+, and Hulu), Amazon Prime Video, Paramount+, and cable TV. Byrne highlighted the impact of last year's Hollywood writers and actors strikes on the availability of content across streaming services.

The streaming industry faces the challenge of striking a balance between pricing their services competitively and providing sufficient content to retain subscribers. As customers closely evaluate costs and the value of available content, streaming platforms must continue to adapt and offer attractive packages to maintain their customer base.