Funflation: Why Staying In Isn’t as Cost-Saving as Before

Inflation for at-home entertainment? You bet, it’s a thing! U.S. consumers have been facing “funflation” for quite a while now, with prices for live activities, like concerts and sports games, shooting up. But recently, even the cost of staying in and streaming movies or playing video games has been giving folks like Alyx Green a bit of sticker shock.

A student from Illinois, Green has found the latest video games too expensive, turning instead to cheaper options or even watching others play on YouTube. She’s among many feeling the pinch as big companies like Microsoft, Apple, Netflix, and more have all raised their prices. In fact, exclusive data dug up for CNBC by PNC Financial Services shows that people scaled back on home entertainment in June compared to a year earlier, especially younger folks like Gen Z and Millennials.

PNC’s senior economist, Brian LeBlanc, says “funflation” isn’t just hitting outdoor activities. Travel, concerts, and home leisure are feeling the burn too. It’s not great news when big names like Xbox and Apple announce price hikes, or when companies blame costs on pricey components and chip shortages. Looks like the convenience of affordable tech is fading as it gets more expensive to keep things charged up, especially with the soaring costs of electricity. This all boils down to what we’re calling “streamflation.”

From Netflix to Amazon to Spotify, a lot of the top streaming services have jacked up their subscription prices. Apple TV+ has done the same, following the lead of Disney, Warner Bros., and others. But maybe free is the way to go, as Fox Corp.’s Tubi is pulling in viewers who are tired of a monthly bill. Folks like Fiona Williams have learned to juggle subscriptions, ditching them when it gets too much. Fiona’s a pro at knowing when to watch free content or cut a service loose. She’s onto reading now, knowing books offer good bang for your buck, with prices actually dropping steadily over the years.

So, if you’re feeling the pinch when you hit the couch for a movie night or a gaming session, you’re not alone. Companies are feeling it too as they shift gears to navigate these new waters, cutting costs and rolling out updates. Looks like we’ll all need a game plan to stay entertained without breaking the bank.