Posted: 2024-05-20 21:45:00

How much do your subscriptions cost you a month and — as the old video piracy ads used to ask — have you got what you paid for?

According to Deloitte's Media & Entertainment Consumer Insights 2023 report, Australian households have an average of 3.2 subscriptions, with streaming video on demand (SVOD) services making up the bulk of those, at 2.6 subscriptions per household.

Reviewing what you're paying for some of these subscriptions and what you're getting in return can be a good place to start if you're looking to cut household expenses.

A few 'little' subscriptions can add up to a lot

Average Australian household spending on video streaming dropped from $62 to $57 a month last year, but reviewing what you're watching — and what it's costing you — can still be an eye-opening experience.

Financial educator Lacey Filipich says what seems like a small impost for a subscription can quickly become a big monthly expense when you sign up to multiple services.

"Subscriptions feel like tiny little drips because, individually, they're small amounts — they might be $10–$20 — but when you add them up, it's a lot of money," Ms Filipich says.

"People will look at their bank or credit card statement and go, 'Wow, I'm using five services that I'm paying for and I'm probably only using two', and that's when you want to say, well, I don't need the other three."

An image composed of hundreds of tiny television screens

What seems like a small impost can quickly become a big monthly expense when you sign up to multiple streaming services.(Adobe Stock)

As Dan Barrett, a television and media critic and publisher of the Always be Watching newsletter points out, people have a finite number of hours to watch television shows and movies each week.

"I would suggest that on average, most people probably need no more than about three different services [at any one time]," he says.

"If you've got very specific interests — say, sports or anime or horror — maybe you'll want to get a specialty service on top of that, but I think for most people, three services is probably about it." 

Ms Filipich only ever subscribes to one paid streaming site at a time, which she says works for her family.

"For some people who like to watch all the different shows … maybe they do need five subscriptions, but we're fine just having one. We watch what's on that one and then cancel it when we're ready to change to another one," she says.

Have you tried turning it off and on again?

It can be easy to fall into what's been termed a "subscription trap", with the process of cancelling or unsubscribing to a service far more confusing and difficult than it is to sign up in the first place.

Ms Filipich says there has been a change in ecommerce trends over the past couple of years and customers are much more willing — and likely — to cancel a service for a period and re-subscribe at a later date, which she says means it's in providers' best interests to make it easier for people to cancel their subscriptions.

"If they've made it hard for you to cancel, and you remember that, you're much less likely to go with them again. They recognise [making the process of unsubscribing difficult] is not a benefit for them anymore."

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