EY study reveals rising concerns over streaming costs

• Anxiety about rising monthly subscription costs is on the increase – with 62% of UK consumers apprehensive of future changes
• However, 48% of consumers are prepared to pay a premium for content aggregation via a single platform
• Almost a quarter of households still experience unreliable home internet, despite ongoing network upgrades
• 38% of UK consumers are concerned about having too much screen time and are keen to have a “digital detox”

Almost two-thirds of UK consumers are concerned about the rising cost of monthly streaming subscriptions, according to the latest EY Decoding the digital home study, which surveyed 2,500 UK consumers on their attitudes towards technology, media and telecoms experiences in the home.

The study indicates that consumer anxiety about rising monthly subscription costs increased from 57% in 2023 to 62% in 2024 .Despite this, nearly half (48%) of consumers express a willingness to pay a premium for the convenience of content aggregation on a single platform – a rise from 36% last year.

Consumers cancelling platform subscriptions has also become a feature of the streaming market in recent years. This year, 31% of household respondents, on average, have cancelled in the last 12 months or plan to cancel at least one streaming subscription service, in line with last year. Decisions to cancel are primarily driven by the need to cut costs (50%) and watching the service less than before (15%). It is worth noting though that a third are resubscribing to one or more services they previously cancelled – a finding that underlines the importance of streaming platforms’ “win-back” strategies.

The search for value amid rising prices

As households grapple with financial mindfulness, 34% are considering more economical broadband options, and 47% are open to ad-supported streaming services for lower subscription rates.

While performance continues to be a key driver in broadband purchasing decisions, the reliability of networks, particularly in urban areas, is a significant concern for consumers, with almost one-quarter (23%) of household respondents still experiencing unreliable home internet, despite ongoing network upgrades. Households are seeking more credible service promises, higher perceived value, and greater convenience, emphasising the importance of trusted brands in the digital home sector.

While the appeal for aggregating connectivity, content and home technology is growing, consumers are also prepared to take more radical steps in search of higher value. 5G mobile is increasingly becoming a substitute for traditional home broadband, with one-third (33%; up from 29% in 2023) of households prepared to make the switch, provided their mobile connection can offer the same level of performance.

Rob Atkinson, EY UK & Ireland Managing Partner for Technology, Media and Telecoms, said: " In a landscape where people are closely monitoring their finances, our latest findings reveal a complex picture of consumer behaviour in the UK. Despite a tangible anxiety over the escalating costs of digital services, there is a pivot towards premium offerings.

“The year-on-year increase in the pursuit of premium streaming offerings, especially among those in their mid-thirties to mid-forties, highlights a sophisticated consumer base that values not just price, but the richness and convenience of their digital lifestyle.

“Simultaneously, the broadband market is witnessing a demographic shift, with younger users leading provider switches. Providers must simplify the switching process and communicate value effectively; particularly as older demographics prioritise network quality and pricing transparency. This nuanced consumer behavior underscores the need for tailored engagement and service assurance to maintain and grow customer bases in a cost-conscious era."

Digital Well-being

Concerns over the effects of digital usage on people’s mental health are on rise, with the concept of a ‘digital detox’ gaining traction over recent years. 38% of all respondents often consider the negative impact of being online on their own well-being and 41% of UK households are concerned about the levels of screentime in their home These worries are more pronounced among younger users, with 47% of 18-34 year olds saying that being online is more of a hindrance. 

Rob Atkinson, added: "It's becoming increasingly clear that our online habits have a profound impact on our mental health and overall well-being. This year's survey reveals a concerning trend, with more than a third of respondents acknowledging the adverse effects of digital consumption on their personal well-being. 

“As the conversation around digital well-being gains momentum and smartphone bans for children become a focal point of public discourse, it's imperative for service providers to reflect on these insights and establish a stance that resonates with and supports the needs of today's families."