According to the survey, Millennials and Generation Z are more likely to spend too much on streaming

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

According to the results, 15% of Gen Z and 13% of Millennials report overspending on platforms like Netflix, Disney+ and Hulu. In contrast, only 7% of Generation X and 6% of Baby Boomers say they go over their budget for these services.

The survey shows how subscription-based entertainment has become a key purchasing 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 increasing adoption of streaming services coincided with changes during the COVID-19 pandemic, when home entertainment surged as people looked for ways to stay busy during lockdowns. This shift cemented streaming as a core part of everyday entertainment, particularly for Millennials and Generation Z who are early adopters of new technologies and platforms.

Economic conditions also play a role in shaping spending patterns.

Millennials and Generation Z have overcome financial challenges such as rising housing costs, student debt, and the economic impact of the 2008 financial crisis. For these groups, streaming provides accessible entertainment at a time when other options may seem out of reach.

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

Streaming is just one part of a bigger picture of spending trends among younger generations, including food delivery and hobbies.