Latest / Wages and Prices with Fexingo: Cost of Living, Pay Raises, and Workers' Purchasing Power / Why Your Raise Is Finally Beating Streaming Subscriptions
Transcript
- Lucas: Last month, average hourly earnings for private workers hit $37.60. That's up about 24 cents from the month before, and up roughly 3 and a half percent from a year ago. Meanwhile, the streaming subscription you probably have — Netflix, Disney+, whatever it is — has barely budged in price. That gap is worth talking about. Luna: So our paychecks are slowly catching up, and streaming isn't eating into that progress. It's not every day you hear good news on the cost of living front. Lucas: Right. And I think it's a nice contrast to categories like rent or car insurance, where we've seen stubborn inflation. Streaming is a case where consumers are actually getting a better deal relative to their earnings. Luna: Why do you think streaming prices have been so stable? I mean, Netflix did raise its standard plan a couple of years ago, but since then it's been pretty quiet. Lucas: Competition is a huge part of it. You've got Netflix, Disney+, Amazon Prime, Apple TV Plus, Peacock, Paramount Plus — all fighting for a finite number of household budgets. That keeps pricing power in check. Plus, many of these services have introduced ad-supported tiers, which let them keep the base price low while making money from advertisers. Luna: And that's exactly where the consumer wins — you can pay $7 a month for Hulu with ads instead of $15. So your raise goes even further. Lucas: Exactly. And if walking through the economy with us has made something click, a couple of dollars a month is genuinely what keeps these shows ad-free and independent. You can support us at buy me a coffee dot com slash fexingo — that's buy me a coffee dot com slash fexingo. Even one coffee keeps the lights on. Luna: Yeah, it really does. We don't run commercials, so listener support is everything. And we mean it when we say even a small amount makes a difference. Lucas: So back to streaming — the CPI data from June actually showed overall prices dipping slightly, down to 332.6 from 333.98. Core inflation was essentially flat. That's part of why your raise feels more meaningful: prices aren't accelerating, and wages are still climbing. Luna: But not all categories are cooperating. Rent, medical care, education — those are still running hot. So streaming is kind of the exception that proves the rule? Lucas: I'd say it's more like a bright spot. The average household spends maybe $50 to $80 a month on streaming services. If that part of the budget is staying flat while your income goes up 3 percent, you've got more breathing room for the stuff that is getting more expensive. Luna: Right. And there's a behavioral side too — people are getting savvier about rotating subscriptions. Cancel one, pick up another for a month, binge, cancel. That puts even more pressure on services to keep prices reasonable. Lucas: Exactly. The 'churn' model is real. Netflix's earnings calls always mention subscriber churn, and it's a big reason they've been cautious about price hikes. Disney Plus learned that lesson too after their 2023 price increase led to a subscriber drop. Luna: So what's the takeaway for the average worker? Your raise is actually giving you more streaming bang for your buck. Lucas: And that's a small but genuine win. It doesn't solve the housing crisis or fix healthcare costs, but it's a reminder that not everything is getting more expensive. In fact, some parts of the economy are becoming more affordable relative to wages. That's worth noting as we head into the second half of 2026. Luna: I'll take a win where I can get one. Maybe I'll finally add that extra streaming service I've been eyeing. Lucas: Just make sure it's ad-supported tier — your raise will go even further.