Research: SVoD subs weather cutbacks
October 10, 2022
From Netflix and Spotify to HelloFresh and Bumble, subscription services have become an indispensable part of many consumers’ lives, notes research firm NRG.
In fact, 51 per cent of consumers say that subscriptions now make up a “significant” portion of their monthly spending, according to its report, The Subscription Economy Grows Up as Consumers Cut Back. As inflation soars to levels not seen in decades, however, people have been forced to make hard choices about their spending. That includes cutting back on subscriptions.
- 66 per cent of consumers expect that they will have to make further cutbacks to their regular spending due to inflation …
- But only 28 per cent of consumers plan to decrease their number of subscriptions over the next six months.
What are they least likely to cancel? Amazon Prime, TV and movie streaming services, and home security systems, says NRG. The most vulnerable subscriptions? Dating apps, personal efficiency apps, and beauty boxes.
Other key findings:
- 24 per cent of US consumers admit to password-sharing, i.e., using a streaming service they don’t subscribe to.
- $10.60 (€10.88) is the maximum amount the average consumer would pay for a streaming service that included ads.
- 66 per cent of consumers agree it’s hard to keep track of all the streaming services that have launched in the last few years.
- 56 per cent of consumers have taken out a subscription planning to cancel before the free trial ended — and 73 per cent of them have been charged because they forgot to do so.