Monitoring streaming services monthly could save subscribers money
COLUMBIA, Mo. (KMIZ)
Streaming services seem to be appearing everywhere, including most people's bank statements.
The average American spends $46 a month on streaming services, according to an August study published by Forbes.
The study found each household subscribes to an average of 2.9 streaming services per month, with the top choices being Netflix, Amazon Prime and Disney Plus.
As streaming becomes such a fundamental part of everyday entertainment, Consumer Reports says there are ways people can save money.
Monitor monthly statements
Senior reporter at Consumer Reports Nicholas De Leon said one way people can ensure they're not losing money is by monitoring their monthly bank statements. This way, consumers keep track of where their money is going.
"A lot of times you'll subscribe to something and forget about it," De Leon said. "So, unless you pay really close attention to your credit card statements every month, you may not even know."
He said many people will sign up for a streaming service to watch one particular show or game and then forget to cancel.
De Leon said another way people can monitor their spending is to subscribe to services through the app store, so all subscription charges are kept in one place and easy to view on the app.
Pay less for services with ads
Meanwhile, De Leon said other ways to save include purchasing cheaper versions of services with ads.
Many services, including Netflix and Disney Plus, have different tiers of subscriptions. Cheaper subscriptions include ads while customers who pay more can stream their favorite shows ad-free.
According to the streaming service's website, Netflix now costs $15.49 per month without ads and drops to $6.99 per month with ads. That's a difference of $102 a year.
Disney Plus is similar, costing $15.99 per month without ads and $9.99 per month with ads. That's a difference of $72 per year.
The Forbes study said 50% of American households pay more for a streaming service without ads.
"What (streaming services) have done now is like, 'Okay, maybe folks are okay with putting up with some amount of commercial breaks in exchange for a lower monthly price," De Leon said. "So, that's another avenue that folks can pursue."
Look for streaming bundles
Other ways to save can include looking for streaming service bundles. For example, Disney Plus, ESPN Plus and Hulu have a trio bundle. Hulu's website said the basic version of the bundle, with ads, costs $16.99 per month and subscribers will have access to all three services.
This is cheaper than if someone subscribed to all three services separately. Both Hulu and Disney Plus plans start at $9.99 a month, while ESPN Plus starts at $11.99 a month. The bundle option saves consumers almost $15 per month or $180 a year.
Consider cheaper alternatives
The Forbes study notes 45% of streaming customers canceled at least one subscription in the last year due to cost.
This comes as many streaming services have increased in cost, with De Leon citing outlets like Disney Plus, Netflix and Amazon Prime all increasing in cost since they first launched.
He said one alternative to streaming is buying a regular television antenna as opposed to separate streaming services. This one-time cost will be about $20-$30 and will still provide many local channels.
For even cheaper options, people can opt for free services such The Roku Channel, Pluto TV and Tubi. De Leon said these services often carry older shows but still offer free entertainment.
One thing he said is important when deciding which streaming services to subscribe to is figuring out which services the household will use.
"If you have kids and they watch a lot of cartoons, maybe you just need Disney Plus. If you're a huge sports fan, maybe you do need ESPN Plus," De Leon said. "So, it is a matter of taking stock of what actually do you need, so to speak, in your streaming entertainment for the month and see how you can maximize."
It's also important consumers know how to cancel their subscriptions. This can be done by going to the streaming service's website directly or canceling through the app store if someone has centralized their subscriptions.
