How Much do Americans Spend on Subscriptions
If you are not frantically asking your friends to provide you with suggestions on the next series to binge-watch, then you are not alive in 2018. With busy lifestyles, long work hours and the growing intolerance towards clothes softener adverts, online video streaming services have become the norm.
Online subscription services, like Netflix, can provide a whole family with hours of content tailored to their own individual viewing habits and patterns. Genius you say? Well the $2.1 million per month Americans spend every on online streaming services per month, would agree with you.
Online Video Streaming (Netflix, Hulu)
A recent study on Americans’ subscription patterns revealed that for many of us, one is not enough, with individuals subscribing to more than one online streaming service. If one asks around they will be told Netflix is best for series, exclusive original content and movies, Amazon Prime Video is best for fans of series like Bargain Hunters and Hulu pleases as an all-rounder for people who want to cut the cord on their, usually much more expensive, digital TV subscriptions.
Furthermore, with subscription services being cheaper overall than a cable subscription, the number of American households choosing to subscribe to one of the aforementioned online streaming services has risen significantly to a whopping 55%.
Online streaming services are now spending a considerable amount from their profits on the creation of new and exclusive content. Netflix has reportedly confirmed that it will continue to invest the astronomical $8 billion to the creation of original content.
Online video streaming is not the only thing we spend a part of our monthly wages on. According to the Nielsen Music 360 2017 U.S. report, the average consumer in America spends approximately $15 monthly, on average, for online music subscriptions.
One of the main attractions of online music streaming services, such as Spotify, is that users can create individual playlists. In fact, 33% of online music streaming services agree that playlists are an important part of their streaming experience. A further 48% state that they prefer listening to their own playlists, rather than listening to others’ compilations. Another important feature seemed to be the ability to share playlists with their family, as any point from anywhere in the world.
In the past, people loved discovering new music by attending a live gig, or by listening to the radio. Recent trends show that though that tradition is still standing strong, a substantial 27% of online music streaming users rely on their service provider for music discovery. With all the above said and done, radio still plays a very important role in most music lovers’ everyday experience, as 72% of all online streamers still listen to some form of radio.
With the rise of smart everything most of us are not confined to listening to music in our house anymore. Playlists are also shared by families on the go, using in car wi-fi facilities, this is why 29% of online streamers are accessing their playlists on the go in their car while driving to work.
Music is an important part of many people’s everyday life, and the 55% of all music listeners who use social media to stay informed about musicians and bands they like, is a testament to that. Paying for an online music steaming service does not appear to be apprehensive to many streamers, as the benefits of reduced or no ads, and ease of use are all important features, they are willing to pay for.
Magazine and Newspaper Subscriptions
America seems to still be faithful to print-oriented publications, which includes magazines and newspapers. Overall, online news and magazine subscriptions only account for 28% of readers who prefer their news in digital format.
Age seems to play a big role in this particular statistic, as older individuals are much more likely to prefer buying a subscription for printed magazines and newspapers, compared to younger readers who prefer reading news and magazine articles via subscribing to online services. Surprisingly college students are much more likely to pick up a printed magazine, take advantage of printed coupons and offers, and also share their magazine with their peers.
Amazingly, more than half of print subscribers have maintained their subscription for more than five year, thus it is not surprising that Americans spend approximately $1.2 billon per year on digital and print magazine and newspaper subscriptions.
Talking about statistics, recent results want women to be the part of the population that is faithfully maintaining printed material as their preferred method of reading a magazine. A large proportion of women still report preferring the “feel” of a printed magazine, and are more likely to keep subscribing to their favorite magazine for a number of years.
The almighty beauty box, a lucrative industry booming in America with one of the brands, IPSY, reaching an astronomical 5,185,943 visits in April 2017. This is an incredible 800% increase in just three years.
Beauty boxes like Birchbox, are very popular among younger subscribers who look forward to their little monthly treats. One of the main attractions of beauty boxes is the fact that consumers get to try a variety of products, which they might not have had the chance to sample otherwise. This is a lucrative business for companies who provide the aforementioned beauty box subscription services with their sample products, as many of the subscribers end up purchasing their full-size products, or liking a specific product that much, that they become repeat customers.
TV and music are not the only popular subscription items Americans spend large parts of their annual wages on. Cell phone contracts and gym memberships are a hefty expense, with the average American gym bunny spending an average of $115,000 in their lifetime on gym memberships. In fact, 37% of gym goers spend $21 – $50 monthly on their gym subscription, with a committed 15% spending more than $101 – $250 per month for their gym subscription.
Given that 95% of Americans now own a cell phone/smartphone of some description, it is not surprising that on average Americans spend $47 monthly on their cell phone subscriptions. It is interesting that between the ages of 18-29 100% of the population owns some sort of cellular device. And interesting fact is that in 1985 cell phone subscribers in the U.S. amounted to 340,213, and by 2010 cell phone subscribers reached an incredible 300,520,098.
The subscription trend does not end here. There are many other subscription services Americans like to spend their money on, and this particular list is not exhaustive, it is just concentrating on the most popular subscription services, however, there is a vast market of food, apparel and beverage services, who have entered the market and will sure be included in future subscription spending habit lists.