Millennials and Gen Z more likely to overspend on streaming, survey notes

A recent survey by First Merchants Bank highlights the role streaming services play in the budgets of younger Americans.

According to the findings, 15% of Gen Z and 13% of Millennials report overspending on platforms like Netflix, Disney+ and Hulu. In contrast, only 7% of Gen X and 6% of Baby Boomers say they exceed their budgets on these services.

The survey shows how subscription-based entertainment has become a central spending component for younger generations. With nearly all U.S. households—99%—subscribed to at least one streaming platform, these services are a routine expense for most Americans. Younger consumers, in particular, are more likely to subscribe to multiple platforms, reflecting their enthusiasm for digital content and desire for diverse entertainment options.

The increased adoption of streaming services coincided with shifts during the COVID-19 pandemic when home entertainment surged as people sought ways to stay occupied during lockdowns. This shift cemented streaming as a core component of everyday entertainment, particularly for Millennials and Gen Z, who are early adopters of new technologies and platforms.

Economic conditions also play a role in shaping spending patterns.

Millennials and Gen Z have navigated financial challenges such as rising housing costs, student debt and the economic impacts of the 2008 financial crisis. For these groups, streaming offers accessible entertainment at a time when other options may feel out of reach.

The appeal of streaming platforms lies in their affordability and breadth of content, though the growing number of available services can lead to subscription stacking. As providers increasingly divide content among platforms, consumers often subscribe to multiple services to access desired shows and movies. This behavior is ubiquitous among younger audiences, who value variety and convenience in their entertainment choices.

Streaming represents just one piece of a larger picture of spending trends among younger generations, including food delivery and hobbies. 

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