AAPL Jan 2025 300.000 put

Streaming: Are consumers fed up with subscription costs yet?

Streaming services have raised subscriptions costs in recent years with a potential for prices to keep increasing down the line. With inflation making its way through consumer goods and services, how are consumers feeling about these price increases? Will they continue to opt in to select services or should streaming companies like Amazon Prime Video (AMZN) be worried? D’Amore-McKim School of Business at Northeastern University Associate Dean of Research and Professor of Marketing Koen Pauwels joins Wealth! to give insight into how consumers are reacting to rising subscription costs from streaming providers.  "If you're the kind of consumer who is relatively price insensitive and you don't want to be bothered with ads and you want all of your shows to be on one kind of data provider so you don't have to lose the time to figure out which show is where, then you're going to settle [and] select for this ad-free tier," Pauwels points out, "which also means that Netflix (NFLX) can continue raising prices on that one because their pool of consumers choosing for this non-ad service is going to be more restricted, more selective who don't care about prices that much." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Nicholas Jacobino