Subscription renewal continues in the U.S. as consumers cut back

Subscriptions Renew As Consumers Cut Back

From Netflix and Spotify to HelloFresh and Bumble, subscription services have become an indispensable part of many consumers’ lives.

In fact, 51% of consumers say that subscriptions now make up a “significant” portion of their monthly spending, according to NRG’s new 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% of consumers expect that they will have to make further cutbacks to their regular spending due to inflation …
• But only 28% of consumers plan to decrease their number of subscriptions over the next 6 months.

What are they least likely to cancel? Amazon Prime, TV and movie streaming services, and home security systems. The most vulnerable subscriptions? Dating apps, personal efficiency apps, and beauty boxes.

A few other interesting numbers from NRG’s report:

• 24% of U.S. consumers admit to password-sharing, aka using a streaming service they don’t subscribe to.
• $10.60 is the maximum amount the average consumer would pay for a streaming service that included ads.
• 66% of consumers agree it’s hard to keep track of all the streaming services that have launched in the last few years.
• 56% of consumers have taken out a subscription planning to cancel before the free trial ended — and 73% of them have been charged because they forgot to do so.