Subscription squeeze: Two-thirds of Americans can’t pay any more for subscription services reveals Bango research

Rhea-AI Summary

A recent study by Bango reveals significant financial strain among American subscription users, with 65% unable to afford all desired services. Notably, 35% are unaware of their spending and this rises to 53% among Gen Z. The study suggests a strong demand for a single platform to manage subscriptions, with 79% supporting a 'superbundle' service. Baby boomers feel the squeeze more acutely, with 74% unable to afford all their subscriptions. The research indicates frustrations around managing these services, promoting the idea of streamlined solutions like Offers on Demand technology.

Positive

• Strong demand for subscription management platforms, with 79% of users supporting single-bill solutions.
• Potential for telecoms to innovate with bundled subscription services, aligning with consumer needs.

Negative

• 65% of American subscription users cannot afford all their subscriptions, indicating market pressure.
• 74% of baby boomers are unable to afford desired subscriptions, highlighting demographic disparities in financial capability.

Over a third of Americans (35%) don’t know how much they’re already spending on subscriptions, rising to over half (53%) for Gen Z

SAN JOSE, Calif., Dec. 06, 2022 (GLOBE NEWSWIRE) -- Two-thirds of American subscription users (65%) say they now “can’t afford” all the subscriptions they want. In spite of this financial pressure, over a third (35%) don’t actually know how much they’re already spending on subscriptions, rising to over half (53%) for Gen Z.

To better keep track of costs, American subscribers are looking for a way to connect all of their current subscriptions (streaming, gaming, fitness and more) into a single platform, app, or monthly bill. In fact, more than three quarters (79%) believe that having this single platform would help them to better manage their household expenses.

That’s according to a new study from Bango — based on data from 2,500 American consumers currently paying for subscription services — the largest survey of US subscribers conducted this year.

Baby boomers are the age bracket most feeling the ‘subscription squeeze’, with three-quarters (74%) of those aged 55 and above being unable to afford all their desired subscriptions. This is compared with just 54% of Gen Z. That’s despite the average boomer paying for just 3 subscription services — compared to an average of 5 subscriptions for other age groups.

While those over 55 may have fewer subscriptions than younger consumers, they do get more use out of them. Just 14% of boomers admit to paying for a subscription service they don’t use — compared to 40% of Millennials and 34% of Gen Z.

Peak subscription

While many subscribers are struggling to afford all the content they want, Bango’s research also highlights a growing frustration with the process of paying for these services.

43% of Americans find the process of paying multiple monthly subscription bills frustrating, while 42% struggle to renew contracts across their various accounts. This is further driving demand for a single ‘superbundle’ platform.

Commenting on this trend, Anil Malhotra, Co-founder at Bango said, “With rising household costs and so many new players entering the streaming market, the US could be at risk of hitting ‘peak subscription’. Now more than ever, major players need to focus on giving subscribers the best bang for their buck.

“The move towards ‘superbundles’ is a great way to achieve this, with existing cable, wireless and telecoms companies now launching bundled subscription services that help consumers land the very best deals.”

Rather than building these deals from scratch, Bango advocates the use of an ‘Offers on Demand’ network — a plug and play solution that already includes hundreds of different streaming providers.

As Malhotra explains, “Telecoms companies like Optus in Australia are already investing in developing these all-in-one solutions using Offers on Demand technology. Subscribers simply select the services they want that month, and the very best deals are calculated for them. As this approach moves to the US — through services like Verizon +play — consumers can save money, simplify their payments, and still access all the subscriptions they want.”

To view Bango’s research data or to find out more about Offers on Demand technology, read the full study here.

About Bango

The Bango Platform provides everything you need for subscription bundling and payments, enabling you to quickly reach new customers and markets. Connect once for a standard system of tools used for customer acquisition, payments and subscriptions, and join an ecosystem of over 150 merchants and resellers already connected to the Bango Platform. Trusted by leading technology companies including Amazon, Google, Samsung, and Microsoft. For more information, visit www.bango.com.

Media contact
Luke Proctor / Immy Holmes
Wildfire
bangoresale@wildfirepr.com

 

FAQ

What does the Bango study reveal about American subscription users' spending?

The study indicates that 65% of American subscription users cannot afford all the services they want.

How many Americans are unaware of their subscription spending?

Over a third (35%) of Americans do not know how much they are spending on subscriptions.

What is the demand for subscription management solutions?

79% of American subscribers believe a single platform would help them manage their household expenses.

Which age group feels the most financial strain from subscriptions?

Baby boomers, with 74% unable to afford all desired subscriptions.

What technology does Bango promote for managing subscriptions?

Bango advocates using 'Offers on Demand' technology for creating bundled subscription services.