New Trade Winds study shows cost-of-living concerns impacting entertainment spending
CHICAGO and VANCOUVER, BC, Aug. 28, 2025 -- 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.
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
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