Streaming services might have to change if they want to keep Gen Z, millennials

Sarah Gambles
·2 min read
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Tom Ryan, president and chief executive officer of streaming at Paramount and co-founder and chief executive officer of Pluto TV, speaks at the LG Electronics press conference before the start of the CES tech show on Jan. 4, 2023, in Las Vegas.
Tom Ryan, president and chief executive officer of streaming at Paramount and co-founder and chief executive officer of Pluto TV, speaks at the LG Electronics press conference before the start of the CES tech show on Jan. 4, 2023, in Las Vegas. | Rick Bowmer, Associated Press

With so many different streaming services with so many different things to watch, how do you even decide which ones you want?

Consumers are facing this dilemma and many are choosing to opt out altogether. After a significant jump in streaming subscribers, especially during the COVID-19 pandemic, many are slowing down. One report from media analysis firm MoffettNathanson predicts the number of subscribers on streaming platforms will start to plateau in 2023.

“Netflix has, for the first time in over a decade, seen no growth,” Jessica Toonkel, Wall Street Journal editor who covers tech and media, said on the “The Journal” podcast. “You also saw Peacock struggle with growth as well, but growth in the United States is definitely slowing.”

What is ‘streaming fatigue’?

According to the “The Journal” podcast, customers are starting to get “streaming fatigue” and are growing tired of having to subscribe to so many different platforms to stream different content.

While streaming used to be the alternative to big company content like cable or dish, it’s now becoming, ironically, mainstream.

Some are starting to create bundle options in a way similar to their predecessors — cable. If you sign up for multiple streaming services to see all of your favorite shows, it will likely be more money than cable ever was.

To cut costs, some streaming services have opted to include cheaper options that are supported by ads. But to keep millennials and Generation Z viewers, they might have to rethink that.

Millennials, Gen Z viewers are more likely to pay more to avoid ads

According to research by Deloitte in a 2021 media trends report, 48% of Gen Z viewers and 46% of millennials are willing to pay more to avoid watching commercials.

Not only will they pay more for ads, but millennials and Gen Z consumers will also subscribe and cancel as they please. They will often watch the show they want and cancel. According to a survey by Axios of viewer behavior, 50% of Gen Z respondents and 45% of millennials will subscribe to a platform intending to cancel once they finish watching the show they signed up to watch.

The future remains somewhat uncertain for streaming companies, but one thing that’s clear is that consumers want all the content but aren’t willing to pay the hefty prices.