Nearly 40% of Americans Cut Streaming Services Amid Price Hikes, Survey Finds

A sharp increase in American consumers are canceling streaming subscriptions amid persistent price hikes, a phenomenon dubbed "streamflation." According to a survey by Ipsos, 39% of Americans canceled at least one streaming service in the six months leading up to mid-September 2026, a significant jump from 29% reported in March.

The 'Streamflation' Effect

Industry analysts are using the term streamflation to describe the cycle of repeated price increases by media companies as subscriber growth plateaus. This trend is forcing consumers to make difficult choices as streaming costs compete with elevated expenses for groceries, fuel, and other necessities. "Consumers are fed up with streaming price hikes," said Forrester VP and Research Director Mike Proulx, as reported by Uniladtech on September 14.

The average American household now spends $69 per month on streaming services alone, according to data from CableCompare. For households that maintain both cable and streaming packages, that monthly cost can range from $185 to $220, making these subscriptions a clear target for budget cuts.

Sector-Wide Pressure

The subscription fatigue extends beyond video content. Data from Circana, shared by analyst Mat Piscatella, showed that cost was the primary reason for cancellation for over 40% of former Xbox Game Pass Essential and PlayStation Plus Essential subscribers. The figure rises to 50% for those who canceled Nintendo Switch Online, implicating major gaming companies like Microsoft (NASDAQ:MSFT) and Sony (NYSE:SONY).

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The trend also shows signs of global pressure. Reuters reported on September 14 that Comcast (NASDAQ:CMCSA) and Paramount are considering the closure of SkyShowtime, their European joint venture, signaling that the economic model for streaming is facing challenges beyond the U.S. market. Other major players like Warner Bros. Discovery (NASDAQ:WBD) and Disney (NYSE:DIS) are also exposed to these headwinds.

Wall Street Divided on Outlook

The market is grappling with how to price this risk, with Wall Street showing a stark division on sector leader Netflix (NASDAQ:NFLX). Last week, Wells Fargo downgraded the stock to Underweight with a $57 price target, citing engagement concerns and the high cost of live content. In the same week, Evercore ISI reiterated an Outperform rating and raised its target to $110, creating a significant divergence in outlook.

Investors are now closely watching for Netflix's third-quarter earnings report, expected in mid-to-late October. Key metrics like net subscriber additions and average revenue per user will be critical. A sequential decline in net subscribers would likely validate the bearish case and apply pressure across the entire streaming sector, while flat or positive growth could support the more bullish thesis.