Europeans now spend almost €700 on subscriptions every year

Rhea-AI Summary

Despite the rising cost of living, European subscribers are spending an average of €696 annually on subscriptions, with UK subscribers leading at €814. The Bango survey of 5,000 Europeans highlights high subscription costs and the impact of ad-supported content on user behavior. Nearly half (42%) of subscribers have canceled due to price hikes, and 76% believe paid subscriptions should be ad-free. The study also reveals a growing demand for 'Super Bundling' — a unified platform for managing multiple subscriptions, with 58% of respondents expressing interest. Spain shows the highest demand for such a service at 67%, while 63% of UK subscribers maintain at least one 'forever subscription'.

Positive

• European subscribers are spending an average of €696 annually on subscriptions, indicating strong market demand.
• The UK leads with the highest subscription spending at €814 per year.
• Despite price hikes, 60% of Europeans would subscribe to more services if they could afford it, showcasing potential market growth.
• 58% of European subscribers express interest in an all-in-one subscription management platform, indicating demand for innovative solutions.
• UK subscribers are maintaining a 'forever subscription' rate of 63%, showing strong customer loyalty.
• The study's identification of subscription management challenges offers service providers opportunities to innovate and meet consumer needs.

Negative

• Nearly half (42%) of European subscribers have canceled subscriptions due to price increases.
• 31% of European subscribers have downgraded to cheaper ad-supported tiers, indicating sensitivity to subscription costs.
• In Spain, 81% of subscribers oppose ad-supported tiers, with 31% canceling services due to ads.
• 27% of German subscribers are paying for unused services, highlighting inefficiencies in subscription management.
• Password-sharing crackdowns in France have led to increased piracy, with 33% now paying for services they previously accessed for free.

Landmark study of 5,000 European subscribers shows the impact of ad-funded content and bundling on streaming and subscription habits

CAMBRIDGE, United Kingdom, June 12, 2024 (GLOBE NEWSWIRE) -- Despite high cost-of-living concerns, European subscribers are now spending an average of €696 on subscription apps and services every year — on top of standard bills such as TV, phone, and internet. UK subscribers lead with €814 per year, followed by France (€780), Spain (€720), Germany (€684), and Italy (€600). That’s according to a newly released European Subscription Wars report from Bango, which surveyed 5,000 European subscribers on their habits and attitudes towards streaming services and subscriptions.

Recent price hikes across the industry, including from the likes of Netflix and Disney+, are impacting subscribers — nearly half (42%) having recently canceled a subscription due to price increases, peaking at 48% in Italy. Despite this, consumers’ appetite for subscriptions remains high, with 60% of Europeans saying they’d sign up to more subscriptions if they could afford it. This is despite already having an average of 3.2 subscriptions — with the UK and Germany leading the way with 3.3 per consumer.

Europeans respond to ‘ad tiering’

The report also reveals diverse reactions to the introduction of ad-supported tiers. In the UK, 28% of subscribers have canceled services due to ads, while Spanish subscribers are the least tolerant of ads, with 81% opposing ad-supported tiers and 31% canceling subscriptions because of them.

Overall, 31% of European subscribers have downgraded to a cheaper ad-supported tier, while 26% have upgraded to avoid ads. A significant majority (76%) believe that paid subscriptions should remain ad-free.

‘Super Bundling’ and subscription hubs

As the number of subscriptions grows, European subscribers are increasingly seeking simplified management solutions. Over half (58%) express a desire for an all-in-one subscription platform that allows access to all services within a single content hub and provides the convenience of managing all subscriptions and accounts through one monthly bill. This demand is especially high in Spain, where 67% of subscribers want a single app to manage all their subscriptions.

Similarly, German subscribers, who are the most likely to lose track of their spending, with 27% paying for services they do not currently use, would benefit from such a unified platform.

UK subscribers are the highest spenders, averaging €814 per year. Despite high costs, there is a strong demand for subscriptions, with 63% maintaining a "forever subscription" they never cancel. French subscribers, who spend €780 annually, have been significantly impacted by password-sharing crackdowns, leading to increased piracy, with one-third (33%) now paying for a service they used to access for free. Italian subscribers, who are the most cost-conscious, spending €600 annually, are receptive to ad-supported tiers, with 35% downgrading to save money.

Paul Larbey, CEO of Bango, commented: “The European consumer’s appetite for subscriptions is significant, representing a substantial portion of monthly household spending. However, managing multiple subscriptions and bills is cumbersome. Our research highlights the growing demand for Super Bundling and all-in-one content hubs, which will simplify the management of various subscriptions and alleviate consumer frustrations.”

The Bango report underscores the evolving landscape of the European subscription market, with a clear trend towards Super Bundling as a solution to subscription management challenges. As consumers seek more streamlined and cost-effective ways to handle their subscriptions, service providers have a unique opportunity to innovate and meet these demands.

To find out more European subscriber trends, download Bango’s full European Subscription Wars: Super Bundling Awakens report here.

About Bango
Bango enables content providers to reach more paying customers through global partnerships. Bango revolutionized the monetization of digital content and services, by opening-up online payments to mobile phone users worldwide. Today, the Digital Vending Machine® is driving the rapid growth of the subscriptions economy, powering choice and control for subscribers.

The world's largest content providers, including Amazon, Google and Microsoft trust Bango technology to reach subscribers everywhere.

Bango, where people subscribe.

www.bango.com 

Media contact
Henry Soundy / Trisha Bahl
Wildfire
bango@wildfirepr.com

FAQ

How much do European subscribers spend annually on subscriptions?

European subscribers spend an average of €696 annually on subscriptions.

What is the average annual subscription spending for UK subscribers?

UK subscribers spend an average of €814 annually on subscriptions.

How have price hikes affected European subscription habits?

Nearly 42% of European subscribers have canceled a subscription due to price increases.

What percentage of Europeans are interested in an all-in-one subscription management platform?

58% of European subscribers express interest in an all-in-one subscription management platform.

What is the opposition rate to ad-supported tiers among Spanish subscribers?

81% of Spanish subscribers oppose ad-supported tiers, and 31% have canceled services due to ads.

What percentage of German subscribers pay for unused services?

27% of German subscribers are paying for services they do not use.

How has the crackdown on password sharing affected French subscribers?

The crackdown has increased piracy, with 33% of French subscribers now paying for services they previously accessed for free.