More people canceling streaming subscriptions

(NewsNation) — Retaining customers is getting more difficult for streaming services.

Customer cancellations on major streaming platforms rose to 6.3% in November, from 5.1% the year prior, the Wall Street Journal reported Tuesday. The newspaper cited data from Antenna, a subscription analytics provider.

The data comes as multiple streaming services have announced price changes and hikes over the past year.

Amazon Prime Video is moving ahead with plans to introduce advertisements to its content unless users pay an additional fee of $2.99 per month. Netflix upped the price of its “Basic” and “Premium” tiers by $2 earlier this fall.

People who use Peacock, Paramount+, Hulu and Apple TV+ also saw price increases in 2023.

Companies have been trying a range of tactics to boost revenues, including lower-priced options that include advertising.

In a shareholder letter earlier this fall, Netflix said roughly 30% of its incoming subscribers are opting for its $7 plan with commercials, growth that is likely to attract more spending from advertisers. The higher prices for Netflix’s premium plans also seem likely to divert more subscribers into the ad-supported option.

“The ‘streamflation’ era is upon us, and consumers should expect to be hit with price hikes, password sharing limits, and enticed with ad-supported options,” Scott Purdy, U.S. media leader for KPMG, told the Associated Press.

The Associated Press contributed to this report.

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