According to Bango's "Subscriptions Assemble" study, Gen Z Americans (aged 18–25) are leading a transformation in the subscription economy. The report, based on a survey of 5,000 U.S. subscribers, indicates that nearly a quarter (23%) of Gen Z pays for premium social media services like Snapchat+ and X Premium, nearly double the 14% rate among the general U.S. population.
On average, Gen Z subscribes to 6.8 services, spending approximately $940 annually. Notably, nearly three of these subscriptions are acquired indirectly through bundles offered by telecommunications companies or other third-party providers. This bundling approach appeals to Gen Z's preference for convenience and cost-effectiveness, with 25% citing faster subscription processes and 36% acknowledging better pricing as key benefits.
Music subscriptions top Gen Z's preferences, with 59% subscribing to at least one service, followed by streaming (56%) and gaming (46%). Interestingly, Gen Z is the only age group where streaming services like Netflix or Disney+ are not the most popular subscriptions. Additionally, 15% of Gen Z subscribes to AI tools such as ChatGPT Pro, surpassing the 9% average among all U.S. subscribers.
Despite their digital savvy, nearly half (48%) of Gen Z admits to losing track of their subscriptions, and 52% express frustration over the inability to manage all subscriptions in one place. This has led to a growing demand for centralized subscription management solutions, with 55% preferring telecom providers to handle their subscriptions and 73% willing to pay more on their mobile or internet bills for bundled services.
Paul Larbey, CEO of Bango, commented, "Gen Z is known for being cost-conscious, so they are discovering real value and convenience in bundled services. That means buying services as bundles is likely to become a lasting habit with this generation."
The findings underscore a significant shift in consumer behavior, highlighting the importance for service providers to adapt to Gen Z's preferences for bundled, easily managed subscription services.