Bidenflation is wreaking havoc on Hollywood’s streaming cash cow as subscribers weary of skyrocketing prices are cutting back on streaming subscriptions.
A recent survey from KPMG found that 20 percent of respondents said inflation has already caused them to cancel at least one streaming service. If inflation continues at its current rate, the survey said, 37 percent of respondents said they plan to drop one to all of their streaming subscriptions.
These viewers are unlikely to transfer their spending to cable or other entertainment sources, “which suggests a shrinkage in entertainment, an industry that has historically been ‘recession proof,'” the study said.
“With persistent inflation combined with rising streaming fees, consumer loyalty will be put to the test,” wrote Scott Purdy, national media industry leader at KPMG.
Monthly subscription fees are rising for some of the most popular services. As Breitbart News previously reported, the price of a standard Disney+ subscription is soaring nearly 40 percent, while Hulu is also hiking its prices by more than 15 percent.
Disney+’s new ad-supported service, which is set to launch in December, will cost $7.99 a month, which is the current price of an ad-free Disney+ subscription. As a result, opting for commercials will save Disney fans $0 in the end.
Earlier this year, Netflix also raised prices for domestic subscribers.
KPMG’s survey found that 37 percent of respondents would like to see a lower cost for the same streaming service.
Overall inflation continues to hammer consumers, with the latest figures released Thursday painting a grim economic outlook.
Consumer Prices Surge Higher Than Expected, Up 8.2% https://t.co/VBASeaiChz via @BreitbartNews
— John Carney (@carney) October 13, 2022
As Breitbart News reported, prices rose a whopping 8.2 percent for September compared to a year earlier, with Core CPI, which strips out volatile food and energy prices, rising 6.6 percent compared to a year ago — the highest rate of core inflation since 1982.
Grocery prices continue to weigh heavily on Americans, with the price of food at home rising 0.6 percent compared with the previous month. In the past 12 months, grocery prices have gone up a stunning 13 percent.
Hollywood studios are staking their future on streaming, spending vast sums to lure consumers into shelling out monthly subscription fees for instant access to their favorite movies and TV shows. But loyalty is proving to be a major challenge, with customer churn plaguing even the most popular streamers.
The vast majority of Hollywood executives and celebrities supported Joe Biden during the 2020 presidential race, ceaselessly promoting him at fundraisers and campaign events.
Follow David Ng on Twitter @HeyItsDavidNg. Have a tip? Contact me at dng@breitbart.com
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