Staying home is no longer cheap: Netflix, Apple, Microsoft hike prices as 'funflation' moves indoors

American consumers who retreated indoors to cut costs — swapping restaurants and vacations for movies and video games at home — are finding that even staying in is becoming a luxury. Major companies including Netflix, Apple, Microsoft and Amazon have raised prices in rapid succession, driving up the cost of at-home leisure.

CNBC reported Saturday that "funflation" — a term coined after the pandemic to describe surging prices for outdoor activities such as concerts and travel — has now spread to streaming services and gaming, hitting consumers inside their own homes.

An analysis CNBC conducted jointly with PNC Financial Services found that Americans' spending on home entertainment fell in June compared with the same period last year. Generation Z and millennial consumers each cut their purchases by about 4 percent.

"Funflation is making a comeback in 2026," said Brian LeBlanc, chief economist at PNC. "The price burden is growing noticeably not just for outdoor activities like travel and concerts, but also for leisure enjoyed at home."

Price hikes are coming from all directions. Microsoft recently raised the price of its Xbox console, while Apple increased prices on some products and acknowledged the moves were "not welcome news." Nintendo raised the price of the Nintendo Switch 2 by 11 percent in the United States. Companies have pointed to rising memory chip costs driven by the spread of AI as a key reason for the increases.

Subscription services have not been spared. Netflix, Amazon and Spotify have all raised their subscription fees recently, and Apple TV+ pushed through its third price increase since 2025. CNBC described the wave of streaming fee hikes as "streamflation."

According to the US Bureau of Labor Statistics, the cost of video and gaming subscriptions and rentals has surged 53 percent since 2019. TV service fees are up 27 percent and music subscription costs have risen 14 percent over the same period. Recreational book prices bucked the trend, falling 4 percent.

As subscription costs mount, consumers are trimming spending — rotating between services rather than maintaining multiple subscriptions at once, or opting for ad-supported free tiers. Some are skipping game purchases altogether, instead watching others play on YouTube or consuming content through social media.

Rising electricity bills are adding to the cost of staying home. Government data show US electricity prices have climbed about 45 percent since 2019. CNBC attributed the increases in part to energy supply shocks stemming from Russia's invasion of Ukraine and ongoing instability in the Middle East.

Economists warn that as leisure costs rise both inside and outside the home, consumer sentiment could weaken further.

PNC said price increases for services such as concerts, sporting events and amusement parks are also putting upward pressure on the core personal consumption expenditures (PCE) price index, a key inflation gauge closely watched by the Federal Reserve.

The average ticket price for the FIFA World Cup being held in the United States this year has already surpassed $900. With concerts and sporting events growing more expensive outdoors and streaming and gaming costs climbing indoors, analysts say American consumers are feeling the squeeze of inflation on all fronts.