New Trade Winds study shows cost-of-living concerns impacting entertainment spending
CHICAGO and VANCOUVER, BC, Aug. 28, 2025 /PRNewswire/ — Reach3 Insights and Rival Technologies today released new findings from Trade Winds, an ongoing research initiative tracking consumer sentiment and behavior as tariff-driven economic pressures continue. The latest wave shows that 39% of Americans have decreased their spending on entertainment, with streaming subscriptions, movie theaters, and live events seeing the biggest cuts.
Nearly 4 in 10 Americans Cutting Back on Entertainment: Streaming Services, Movies, and Live Events, According to Reach3 Insights and Rival Technologies
Among those reducing entertainment spend, nearly half cancelled one or more streaming services (46%), 43% cut back on theaters, and 39% scaled down live event attendance. Many cited rising everyday costs (62%) and the need to cut back across all categories (44%) as the primary drivers.
“Entertainment has always been resilient, but right now consumers are drawing sharper lines between what’s essential and what’s nice-to-have,” said Matt Kleinschmit, CEO of Reach3 Insights. “For media companies, content producers and service providers alike, the key is listening closely to their audiences and using modern in-the-moment consumer insight techniques to get below the surface and truly understand what will make their offerings feel indispensable in people’s daily lives.”
The shift is reshaping viewing behavior. Six in ten Americans have changed their streaming habits in the past six months, most commonly by switching to ad-supported tiers (24%), relying on ad-supported or free apps (32%), or subscribing only when specific shows are available (21%). Nearly half have cancelled or downgraded a subscription, with affordability and lack of compelling content cited as top reasons.
These findings align with wider industry headwinds. U.S. box office revenue is lagging compared to recent years, with only a handful of blockbusters breaking through, while mid-tier films struggle to draw audiences. Live events face similar pressure as ticket prices climb.
At the same time, Americans are divided on what’s truly “essential”:
- 86% say internet service is essential
- Only 6% name movie theaters and 9% cite live events
- YouTube shows up on both lists (44% nice-to-have, 36% essential)
- Paid streaming services do the same (41% nice-to-have, 35% essential)
When asked which streaming platforms are most essential, respondents ranked:
- Netflix: 68%
- Hulu: 33%
- Prime Video: 25%
- Peacock: 13%
- Disney+: 9%
- HBO Max: 8%
Notably, more Americans view Hulu as more essential than Disney+, an insight that adds new context to Disney’s recent plans to consolidate the two platforms.
“Consumers are redefining entertainment in the face of broader economic concerns,” said Varun Jog, Research Director at Reach3 Insights. “The winners will be the brands that adapt quickly, offering deep value in ways that reflect their shifting priorities.”
Trade Winds is a mobile–first research community that runs regular pulse–check surveys to capture real–time consumer sentiment and behavior as economic conditions shift. Future waves of the study will dive deeper into how tariffs and economic uncertainty are shaping everyday life.
To explore the latest findings or sign up for future updates, visit: reach3insights.com/trade-winds.
About Reach3 Insights and Rival Technologies
Reach3 Insights and Rival Technologies are the pioneers in conversational research and the leading authority on insight communities. Rival’s mobile-first, conversational platform helps transform conventional surveys into personalized research experiences that emulate the way people communicate today. Reach3 is an award-winning full-service consulting firm that uses immersive, in-the-moment research designs and dynamic digital storytelling to deliver deep experiential insights. Amplified by AI, Rival and Reach3’s conversational research approach delivers higher response rates, deeper engagement, and faster time-to-insights. To learn why brands like Coca-Cola, Dell Technologies, Kimberly-Clark, and Warner Bros. have made the switch to conversational, please visit rivaltech.com or reach3insights.com.
Media contact: Marie Melsheimer, [email protected], +1-541-815-3951
SOURCE Rival Technologies
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