Europeans now spend almost €700 on subscriptions every year
June 12 2024 - 5:00AM
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 BangoBango 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 contactHenry Soundy / Trisha
BahlWildfirebango@wildfirepr.com
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