Streaming as an Indulgence Sees Spend Across Financial Lifestyles

Despite budgetary constraints, extra spend in certain discretionary categories may go a long way for the consumer mindset.

When faced with decisions about which services stay and which go, consumers have made their preference for streaming clear, as online platforms recently surpassed traditional cable in viewership. Due partially to the plethora of customizable online options consumers have at their digital fingertips, the total share of American viewership via broadcast or cable fell below 50% for the first time in July, according to Neilsen estimates.

While escapism from the daily drudge may be a near-necessity in practice, consumers across financial lifestyles call at least some of their streaming spend indulgent. This is reflected in the accompanying chart created for the August “New Reality Check: The Paycheck-to-Paycheck Report,” a PYMNTS collaboration with LendingClub. Approximately 25% of consumers across financial lifestyles call their streaming spend over the 30 days previous to being surveyed “indulgent.”

The consumers least likely to label this behavior “indulgent” were those living paycheck to paycheck with no issues paying bills, at 21%. One reason for this could be budgeting, as consumers walking the tightrope of just making ends meet could be loath to overspend in any capacity. Indeed, the same “Paycheck-to-Paycheck” report notes that this consumer segment has the lowest airfare spend as well, with only 19% making these purchases in the 30 days previous to being surveyed.

Although consumers across financial lifestyles are pulling back from spending on other indulgences such as leisure, travel and other personal services, some spending in these sectors has persisted. Across lifestyles, 34% have gone out to a sit-down meal and another 26% have shelled out for personal or group physical training. While perhaps a black mark on budgets, these splurges may be important to maintaining consumer sentiment, as spending only on life’s strictest essentials could make it difficult to be optimistic.

Streaming is not a life-or-death necessity, of course, and it may eat further into consumers’ discretionary budgets as major providers raise rates and crack down on password sharing.  Nevertheless, the data seems to show that for some consumers, this and other extra indulgences may be worth the cost.