By - Emily Glover (Contributor)
Fact Checked - Samantha Allen (Home improvement, Gardening, Home design)
Published: Mar 9, 2023, 5:01pm
In most households, streaming services like Netflix, HBO Max and Prime Video are budget-friendly alternatives to traditional cable. However, that's only true if you are actually using the streaming services - and a new Forbes Home survey found that 47% of people pay for streaming services that go unused.
There may soon be a reckoning for people who don't use the streaming services they pay for each month. Although Netflix remains the most popular streaming service, 35% of survey respondents reported they will stop using the service if Netflix cracks down on password sharing or raises prices.
Each streaming service has its pros and cons, which leads to many users getting multiple subscriptions so they can view, hear and play the things that are important to them. According to the survey findings, the average person subscribes to 2.8 streaming services - with nearly 10% paying for more than five streaming services at any given time.
There are clear generational divides when it comes to the number of streaming services the average person uses. Specifically, Baby Boomers statistically use the fewest streaming services while Millennials and Gen X are neck-and-neck when it comes to who uses the most.
But just because people are paying for streaming services doesn't mean they are getting full use out of the subscriptions. Nearly 50% of people pay for services they rarely or never use. Men are even more likely to pay for dormant services.
Netflix is a long-time player in the streaming service with a diverse catalog of shows and movies, so it's little surprise that Netflix is the most commonly used streaming service with 52% of people having their own subscription. That could also be because 24% of survey respondents simply prefer using Netflix over any other option. (Sorry, Hulu, you're at the bottom of the list when it comes to user preferences.)
Rounding out the top five most popular streaming services are Amazon Prime Video (10%*), HBO Max (7%), Apple TV (7%) and Youtube TV (7%).
*Amazon Prime Video is included with an Amazon Prime membership.
Although Netflix has a pretty solid lock on the popularity rankings, the survey results suggest there is a chance it could be dethroned. It is widely believed that Netflix is preparing to crack down on password sharing. While the company backtracked a bit, it is clear that more enforcements are coming - which would cause 35% of survey respondents to reconsider their Netflix subscription. When extrapolated for Netflix's full user base, that could result in approximately 80 million lost subscribers.
Netflix isn't the only streaming service with fair-weather fans. About one in four respondents said they would stop using any given service if higher prices and stricter rules were put in place.
When it comes down to it, streaming services can make or break it with just one show that people want to watch: More than 57% have signed up for a subscription service just to tune into one show. In fact, more than half of streamers found it worth the expense of a month-long subscription to binge a show.
Most people are also willing to pay more for subscriptions that don't show ads, although it's a pretty thin margin that likely comes down to how much more you need to pay for an ad-free experience.
It seems that many people are not closely tracking their subscription spending, which plays in the favor of the streaming service companies. Although just 4% said they never review what streaming services they have active subscriptions to use, a full 50% have forgotten to cancel after a free trial.
According to the survey, 47% pay for a streaming service they never use. This could be because they've forgotten to cancel it or because they are holding out hope that the streaming service will again offer something they don't want to miss.
Streaming services have become a much-loved part of life for many people - but the subscription fees can add up if left unchecked. It's a good idea to regularly review which streaming services you actually want so you don't fall into the 47% of people who spend money every month on services they don't use.
To understand Americans streaming habits and sentiment, Forbes Advisor commissioned a survey of 1,000 Americans conducted by market research company OnePoll, in accordance with the Market Research Society's code of conduct. The margin of error is +/- 3.1 points with 95% confidence. The OnePoll research team is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR).
