In the U.S., each generation—Gen Z, Millennials, Gen X, and Boomers—exhibits unique behaviors and attitudes towards subscription services, from how much they spend to how they manage and prioritize subscriptions. The new Bango Generational Report dived into the different subscription trends across different generations in the U.S., based on data from 5,000 subscribers.
Gen Z (born 1997-2012), being digital natives, demands convenience, flexibility, and personalization. However, their limited income restricts their spending, making them more selective. 63% of Gen Z subscribers prioritize TV or film services, followed by 55% who opt for music subscriptions. 39% subscribe to gaming services. Although 25% of Gen Z pay for between 6 to 10 subscriptions, most (80%) spend less than $100 monthly on these services. Half of this group is unaware of their total subscription spending, and 50% pay for subscriptions they do not use. This generation is quick to cancel and restart services, reflecting their lack of brand loyalty. Furthermore, 39% of Gen Z use pirate streaming services, and 55% feel frustrated that they cannot manage all their subscriptions in one platform. A significant 70% would prefer an all-in-one subscription management app.
Millennials (born 1981-1996) are the most invested in subscriptions, often referred to as the "subscription generation." They hold an average of 5.5 subscriptions, with 35% spending over $100 per month. 76% subscribe to TV or film services, and 60% subscribe to retail (Amazon Prime) and music services. 41% of Millennials also subscribe to gaming services. 43% of Millennials use pirate streaming services, seeking convenience and affordability. Managing their subscriptions is a challenge for 56%, as they want a single platform to streamline the process. Despite these struggles, 63% are willing to pay more if their mobile providers bundle popular subscription services. 80% desire an all-in-one subscription management hub, making this group prime candidates for Super Bundling services.
Gen X (born 1965-1980) has fewer subscriptions than Millennials but still shows a willingness to pay for convenience and value. 81% of Gen X prioritize TV and film subscriptions, while 64% subscribe to retail services. Like Gen Z, 79% of Gen X spend less than $100 per month on subscriptions. This group is more aware of their spending, with 55% knowing how much they allocate to subscriptions each month. However, 46% express frustration about not being able to manage all subscriptions in one place, and 74% support the idea of a single subscription platform. 42% of Gen X are open to paying a higher mobile or internet bill if subscription services were bundled.
Boomers (born 1946-1964) have the fewest subscriptions, with 87% subscribing to 5 or fewer services. They are the most budget-conscious, with 81% spending less than $100 monthly. Nearly 63% are aware of their spending on subscriptions. While they tend to be less frustrated with managing subscriptions, 45% would like the ability to pause their subscriptions more easily, and 40% desire a unified platform to manage all services. Interestingly, 58% of Boomers would not be willing to pay more for a bundled service, even though 70% admit they cannot afford all the subscriptions they would like.
As the subscription economy continues to evolve, Super Bundling presents an innovative solution that not only addresses the pain points of managing multiple services but also offers significant growth opportunities for resellers and content providers. With consumers willing to pay for convenience, particularly among Millennials and Gen Z, businesses that adopt this all-in-one approach stand to gain a competitive edge in the subscription market.