The average American now manages 5.2 subscriptions, spending about £55 ($69) per month, according to a survey of 2,500 US consumers by subscription-bundling service Bango. This equates to roughly £660 ($830) annually.
However, nearly a quarter of respondents said they are spending more on subscriptions than they can afford, with the figure rising sharply to 41% among Gen Z participants. As subscription costs increase, many are willing to accept more advertisements in exchange for lower prices.
The shift is particularly evident among streaming service users: 52% of Apple TV subscribers, 48% of Disney+ users, 47% of HBO Max customers, 44% of Netflix users, and 40% of Amazon Prime Video subscribers said they would accept more ads if it reduced their bills. Overall, 36% of Americans would sit through twice as many ads to lower costs, rising to 46% among Millennials and 49% for Gen Z.
Subscription services have proliferated in recent years. A 2023 Harvard Business School study found that nearly 75% of companies selling directly to consumers now offer subscriptions, covering everything from car washes to beauty treatments. Yet some consumers are growing weary of the trend.
Shonit Kaluri, 27, told The New York Times: 'I don’t think there’s a single thing you can sign up for at this point that isn’t trying to give you a subscription. You end up wasting a lot of money through subscriptions because you think you’ll save money up front.' He previously paid £40 ($50) a month for a coffee subscription but found he did not use it enough to justify the cost.
The average cost of digital subscriptions has risen 19% since 2020, according to DepositAccounts. This has prompted 37% of consumers to cancel at least one subscription in the past six months. Services with the biggest price increases include Disney+, Apple TV, Xbox Game Pass, the New York Times, and Hulu.
