–Earnin, an app that allows anyone with a job and a bank account to get paid the minute they leave work, found that roughly 1 in 8 streaming subscribers living paycheck to paycheck had an overdraft fee in the last year triggered by their subscription.

The analysis, Netflix May be Growing, but Not Among Those Living Paycheck to Paycheck, looks at the streaming subscription habits of Earnin users.

The report finds that:

  • The fraction of Netflix subscribers among those living paycheck to paycheck has remained remarkably flat.
  • Of these streaming subscribers, roughly 1 in 8 had an overdraft fee in the last year triggered by their subscription.
  • Netflix’s new 2018 pricing appears to have stunted new user growth among those living paycheck to paycheck.

“Streaming services like Netflix and Hulu cost about $10 a month, yet that small expense can result in frustrating overdraft fees for a shockingly large number of Americans,” said Earnin Economist Peter Griffin in a statement. “Overdrafts triggered by autopayments complicate an already tenuous situation. Without a financial cushion, these unexpected shocks too often derail budgets and in some cases, trigger a cascading cycle of debt.”

In just the past five years, the percent of Earnin verified users paying for Netflix, Hulu, or YouTube has steadily increased from around 25 percent in June 2013 to more than 32 percent, yet  the fraction of those paying for Netflix has remained remarkably flat over time, with about 24 percent of Earnin users paying for the industry leader as of July 2018.

Netflix’s new 2018 pricing appears to have successfully converted existing subscribers, but at the cost of further stunting new user growth among those living paycheck to paycheck in the United States.

Relative to the average cost of cable television providers, streaming services are inexpensive, leading millions of Americans to cut the cord annually, but people living paycheck to paycheck frequently pay a higher price courtesy of overdraft fees on automatic payments.

For the full Earnin Netflix participation study, please visit the Earnin Blog.