Takeaway meals, groceries and holidays aren’t the only things Australian households are cutting back on to save money, with new research revealing that Aussies are ditching streaming services to claw back cash.
The latest research from Compare the Market has found that one in five (20.4%) surveyed Aussies are cutting back on streaming services to curb their household spending.* Costs can quickly add up, with the research showing that, on average, Australians are paying $30 a month for two streaming services, totalling $360 a year just for in-house entertainment. That’s enough money for an extra grocery haul or two a year, according to Compare the Market’s Chris Ford.
“We know that many Australians are looking to make their household budgets stretch to the max and are reducing their spending on small luxuries such as takeout and weekend trips,” Mr Ford said. “Ditching in-home entertainment is another easy way households are keeping costs down.
“Many streaming services offer monthly subscriptions at relatively low prices, however, those costs can quickly add up to hundreds of dollars a year, which could be enough for an extra trip to the grocery store, go towards utility bills or even be put aside for gifts for upcoming birthdays and anniversaries.”
The research also revealed that Gen Z is the most likely to ditch streaming services, with 27.7% of the cohort saying goodbye to online streaming to save on spending. Millennials (24.0%) were the next trigger happy with cancelling their subscriptions, while over one-fifth of Gen X (21.9%) were also looking to save some dollars by unsubscribing. Baby Boomers were the least likely to give up their binging habit at 12.5%, however, they were also the cohort to pay the least for their streaming services.
|Generation||% of people cutting back on streaming services||Average number of streaming services used||Average cost of streaming services per month|
Source: Compare the Market survey of 1,010 people, conducted in February 2023 and Compare the Market survey of 1,003 people, conducted in April 2023.
Queenslanders are also leading the charge for ditching the flicks as a way to save money, with 26.1% cutting back on streaming costs, while only 18.6% of New South Welshmen and 18.1% of Victorians are doing the same to save money.
As for the streaming services that people are looking to cancel first – Netflix takes the cancellation crown, with almost a quarter of people looking to cancel the provider first, with Optus Sport and Disney+ rounding out the top three choices. These three providers were also unanimously the first to be cancelled across all generations.
|Streaming service provider to be cancelled first||Percentage of people|
For Australians looking to cancel either Netflix, Optus Sport or Disney+, households could be saving between $83.88 – $299.88 a year, depending on their subscription tier. If Australians were also to give up a premium Stan account with Stan Sport, they could be saving up to $432 a year.
|Streaming service||Monthly costs||Yearly costs|
|Binge||$10 – $18||$120 – $216|
|Kayo||$25 – $35||$300 – $420|
|Netflix||$6.99 – $22.99||$83.88 – $275.88|
|Optus Sport||$6.99 – $24.99||$83.88 – $299.88|
|Paramount+||$4.99 – $11.99||$49.99* – $119.99*|
|Stan||$10 – $21||$120 – $252|
|Stan with Stan Sport||$25 – $36||$300 – $432|
* Prices denoted are based on a yearly subscription fee as indicated by the streaming service provider, which must be paid upfront. All other prices are based on a calculation of 12 monthly fees for the year.
“Families are feeling the pinch right now and may turn to completely cancelling their subscriptions, but that’s not the only way to save money,” Mr Ford said.
“It’s important to review your subscription plans and see if there’s a way for you to reduce your subscription level to something that still fits your needs. Otherwise, see if you can share your subscription with another household or friend, cutting the cost by half.
“We know that some streaming providers are offering cheaper plans if you’re willing to sit through ads or if you’re happy to stream in a lower quality. You may also choose to reduce the number of subscriptions you have. If you opt for a monthly plan, you can cancel at any time. The major networks also have free streaming apps, where you can watch hundreds of movies and TV shows for free.”
“Some other small things around the house that could help reduce costs include setting your heating unit between 17°c and 19°C this winter, switching off appliances at the wall when not using them, buying in bulk when it’s possible, and reviewing your insurances to see if they still meet your needs, given that your situation may have changed since you last set your eyes on them.”
*Compare the Market Survey of 1,003 people, conducted in April 2023.
For interviews and more information, please contact:
Noémi Hadnagy | m: 0433 377 252 | e: [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, travel and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.