14 JUN 2024

Europeans spend €700 on subscriptions yearly

A report by Bango showed the impact of ad-funded content and bundling on streaming and subscription habits.

14 JUN 2024

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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- as informed by Bango in its “European Subscription Wars” report. UK subscribers lead with €814 per year, followed by France (€780), Spain (€720), Germany (€684), and Italy (€600).

Recent price hikes across the industry, including from the likes of Netflix and Disney+, are impacting subscribers. Nearly half (42%) have 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.

The report also revealed 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.

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 subscriber 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, said: “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.”