We define ‘streamflation’ as the gradual increase in subscription prices for streaming platforms and digital content. It has been a feature in Barclays’ research for several years, with increasing prices present in consumers’ concerns. 

In our latest data in Barclays' monthly Consumer Spend report, we can see the huge growth in the subscription sector more generally. Right now, consumers are spending an average of £175 per year on film and TV streaming, which is more than the annual cost of the BBC Licence Fee. As well as this, one in five (19 per cent) consumers are telling us that this is an increase on five years ago.

Now, while there are subscription services for just about every aspect of life now, and this will include meal delivery services , home delivery for artisan coffee and tea makers, by far the most popular subscription types are for film and TV. 

If we take Netflix for one example, at the last count, the streaming giant had over 282 million subscribers, and over 17 million accounts in the UK. After an explosion of growth, partly brought on by the Covid-19 pandemic where millions stuck at home with time to explore what these services had to offer, more and more streaming services were rolled out. With a content-hungry public to satisfy, the number of shows and moves released has increased, but prices have risen alongside it. 

The monthly cost of an advertisement-free subscription to the UK’s six biggest TV streaming services stands at £57.94, or almost £700 per year. That does not include the cost of the BBC license fee, or any sports packages. For many of the UK’s households, that is a huge chunk of their monthly non-essential spending. 

Belts are being tightened across the UK. Almost nine in 10 (89 per cent) consumers told us they are concerned about rising household bills, with water, energy and council tax amongst the essential costs set to increase in April. Add to this concerns about inflation more generally, which now stands at 88 per cent, their highest level since September of 2023, and you have a situation where many consumers will be making tough choices about where they spend their money. 

Streaming services will not be immune from this, and in our latest research, almost one in three (28 per cent) consumers told us that they have reviewed their subscriptions to make sure they are only paying for what they use. Of those consumers, one in five (20 per cent) ended up cancelling or planning to cancel a subscription because it’s now too expensive.

Adding to this, over three in five consumers (61 per cent) are concerned more widely about the rising cost of digital content and subscriptions, and, when April’s predicted price rises bite, we can likely expect more movement as consumers prioritise the services, they use the most. 

Speaking about this, Karen Johnson, Head of Retail at Barclays, said: “With the upcoming household bill rises, consumers are making conscious adjustments to their essential spending – prioritising their financial wellbeing by reviewing their budgets and setting financial goals.”  

Wary that once consumers have cancelled a subscription, it is tough to win them back, many streaming services have rolled out a pause option. Rather than deleting their account, and all the viewing preferences that have been created, many services, including Netflix and Disney+, allow users to pause their subscription for a period of time. That way, when a show they love is returning, it’s just a click of button to turn the service back on.