long-term relationship with the consumer,” says
Logan Allec, a CPA and founder of the financial
blog Money Done Right.
MEETING PEOPLE WHERE
THEY’RE SPENDING
The Deloitte study notes the percentage of U.S.
households subscribing to a paid streaming
video service grew from 10% in 2009 to 55% in
2017 — a 450% increase. Consumers subscribe
to an average of three such services.
Issuers have taken notice. Wells Fargo made a
splash last summer, revamping the Wells Fargo
Propel American Express, which now earns
triple points back per dollar spent on eligible
streaming services. In May 2019, the Blue
Cash Preferred Card from American Express
underwent a makeover, adding select U.S.
streaming services as a 6% cash-back category.
The following month, the Chase Freedom
entered the streaming fray. The card earns 5%
cash back in bonus categories that rotate each
quarter, on up to $1,500 in spending per quarter.
(You must opt in to the bonus categories each
quarter; all other purchases earn 1% back.) From
July 1 to Sept. 30, 2019, one of those bonus
categories is select streaming services.
Kunal Madhok , vice president of U.S. consumer
lending and acquisition at American Express,
noted via email that AmEx research found that a
segment of millennials were spending more on
“day-to-day” costs like commuting and streaming
compared with five years ago. So the Blue Cash
Preferred was reworked to reward cardholders
more heavily for these types of costs.
“The card is designed to give people the most
cash back on the things they value and spend
frequently on, now including quality time at home
Image: Burak Karademir