More Than Half of Americans Watch Free Streaming Because They Can’t Justify Another Bill

Streaming fatigue doesn't come from watching too much TV, but rather from being overwhelmed by the sheer number of services and their costs. There's seemingly a “need” to sign up for another service to watch the latest show.

But with numerous subscriptions and rising costs, consumers are taking another look at their streaming service lineups to see where they can cut back and save.

In fact, 55% of Americans use free, ad-supported streaming services because they can no longer justify paying for another subscription.

By mixing a variety of free services, ad-supported tiers, YouTube, and other lower-cost entertainment options, consumers are looking to make TV feel manageable again.

Cost plays a huge role in which streaming services consumers decide to keep — or kick.

That’s also why 55% use free, ad-supported streaming services instead of paying for another subscription, and 58% of survey respondents reported watching free, ad-supported YouTube content as a substitute.

Free streaming services are becoming a practical part of how many Americans watch TV, whether it’s catching videos and concerts on YouTube or discovering shows on Free, Ad-Supported Television (FAST).

Not everything on streaming needs to be the latest rentals or releases — turning to lower-cost platforms allows consumers to maximize their day-to-day entertainment without maxing out their budget.

Other popular free-streaming platforms include Tubi (43%), The Roku Channel (32%), and Pluto TV (30%).

Rather than forgoing streaming entirely, Americans are actively managing their streaming costs to figure out which services are worth signing up for, keeping, or canceling.

While 52% of Americans have canceled or downgraded a streaming service because of a price increase, 55% have resubscribed to a streaming service they previously canceled. That suggests cancellations don’t necessarily signal bad or unwanted service, but rather a flexible spending point in a monthly expense budget.

The same goes for signing up: 48% have subscribed to a streaming service specifically to watch one show or event, then canceled immediately after. Streaming is treated more like a rotating selection of options rather than long-term commitments, and simplifying a streaming lineup can make these short-term swaps easier to manage.

Alongside specific content considerations, these short-term commitments are contingent on cost: 38% switched from a paid ad-free streaming tier to an ad-supported tier in the past year.

Content quality is a factor — 49% feel it has gotten worse over the past two years — but the primary motivator for cancellations appears to be cost.

Between the multitude of services with rotating programming and the need for slimmer budgets, 43% of Americans are likely to cancel at least one streaming service in the next three months.

Though free streaming is growing, paying for multiple services is still very much a reality: Americans subscribe to an average of 2.92 paid streaming services, with a median of 3.

And though 24% of Americans pay for three streaming services, 21% pay for five or more.

So which streaming services are Americans most likely to have? The total paid subscription shares are led by Netflix, Amazon Prime Video, and Hulu; the ad-supported tier subscriptions are led by Prime Video, Hulu, Netflix, and Peacock.

Major streaming companies are competing in the crowded space to get a larger share of those subscriptions, and to compete more effectively, they offer tiered pricing.

Given the choice, most people would probably prefer seamless, ad-free TV, but advertisements are an acceptable trade-off when the alternative is a higher monthly bill.

American streaming trends reflect this: 58% watch YouTube to substitute for paid streaming, 55% use ad-supported streaming to avoid another subscription, and 38% downgraded from ad-free to ad-supported tiers in the past year.

In addition to low-cost or free streaming options, 37% use an over-the-air antenna to watch local channels.

With so many additional options, Americans are hopping between various screens and menus to find something they want to watch — and wishing things could be simpler.

Most people love the ease, flexibility, and control of having multiple streaming options, but they'd prefer not to work so hard to manage or afford them.

As many as 68% of Americans would consolidate all their streaming services into one monthly bill if they could, and 46% already bundle their streaming services together.

Overall, consumers want streaming to be an affordable and convenient way to watch what they want, when they want it. If they can’t make it work for their budget, they’ll find ways to supplement their entertainment with lower-cost and free streaming platforms.