The subscription economy has evolved dramatically over the past two decades, becoming more competitive than ever. According to Bango’s “Subscription Wars Super Bundling: Global trends” report, in the U.S., which leads the global subscription economy, consumers rely on subscription services for many aspects of their lives. With an average of 4.5 subscriptions per user, Americans have embraced multi-service bundles. Europe, while behind the U.S., is also seeing strong growth in Subscription Video on Demand (SVOD), with the average European holding 3.2 subscriptions. Latin America, driven by rapid digitization and improved payment systems, is showing significant potential with an average of 3.5 subscriptions per user.
One of the key challenges facing consumers is subscription fatigue. Despite the popularity of subscriptions, many users feel overwhelmed by the sheer number of services available. This sentiment is strongest in LATAM, where 80% of subscribers feel there are too many choices. The U.S. and Europe also report high levels of frustration, with 68% and 65% of subscribers respectively agreeing that there are too many options. Consumers are demanding easier ways to manage their subscriptions, with many calling for a single platform to handle all their services.
Spending on subscriptions has also increased significantly. The average American spends $924 per year on subscription services, while Europeans spend $762 and LATAM consumers spend $444. The rising costs have forced many subscribers to cancel services, with 57% of users in both the U.S. and Europe reporting that they have canceled at least one subscription due to price increases. In LATAM, 42% of subscribers have done the same. The affordability gap is clear, with 67% of Americans and 68% of LATAM subscribers unable to afford all the subscriptions they desire.
Crackdowns on password sharing have been another major trend in the subscription economy. Streaming giants like Netflix and Disney+ have implemented policies to limit account sharing, particularly in the U.S., where 31% of subscribers now pay for services they once accessed for free. In LATAM, this number is even higher at 40%. However, these measures have led to an increase in the use of pirate streaming services, with 27% of U.S. subscribers admitting to using unauthorized platforms.
Tiered subscription models are gaining traction, offering consumers more affordable options in exchange for viewing ads. LATAM has been a leader in this area, particularly with mobile-specific tiers designed for smartphone users. However, the introduction of ads has not been universally welcomed. In LATAM, 44% of subscribers have canceled services due to ads, while 86% believe that paid subscriptions should never include advertisements.
Flexibility has become an important factor for consumers, with many opting to pause and restart subscriptions as needed. This behavior is particularly prevalent in LATAM, where 37% of subscribers frequently pause their services. By contrast, American consumers show strong brand loyalty, with 75% reporting that they have at least one subscription they will never cancel. European subscribers fall somewhere in the middle, showing less loyalty but also less inclination to pause their subscriptions.
Managing subscription spending has proven difficult for many consumers, particularly in the U.S., where 35% of subscribers do not know how much they spend on subscriptions each month. This lack of awareness often results in "vampire subscriptions"—services that consumers continue paying for without using. In LATAM, 34% of subscribers admit to paying for services they no longer use, while in Europe the number is slightly lower at 27%.
Indirect subscriptions, where consumers sign up for services through third-party providers, are becoming more popular. In Europe, nearly 30% of subscribers now access their subscriptions indirectly, often through bundles offered by telecom companies. This trend is also growing in the U.S. and LATAM, where 20% and 21% of subscribers respectively use indirect methods.
The demand for Super Bundling is one of the most significant trends identified in the report. Consumers are increasingly looking for ways to manage all their subscriptions in one place. In LATAM, 79% of subscribers want a single app to manage all their services, a sentiment echoed by 73% of American subscribers. Consumers believe that such platforms would help them better manage their household expenses, with 81% of LATAM subscribers and 71% of Americans expressing this view.
Content hubs are becoming more prominent, particularly in the U.S. and Australia, where platforms like Verizon's +play and Optus SubHub allow consumers to manage multiple services from a single platform. These hubs offer convenience and flexibility, which subscribers are increasingly demanding. However, there is still significant untapped potential for such platforms in Europe and LATAM.
Telecom companies are playing a growing role in the subscription economy, particularly in LATAM, where 55% of subscribers want mobile providers to lead the way in creating centralized content hubs. Telcos are already bundling subscription services, but there is room for expansion, particularly in offering a wider range of services beyond SVOD.
The subscription economy is entering a pivotal phase, where consumer demands for flexibility, value, and ease of use are reshaping the competitive landscape. As subscription services continue to expand globally, companies must focus on creating seamless, bundled experiences that meet the evolving needs of their customers. With rising costs, increasing competition, and growing frustration around subscription management, those providers who innovate with solutions like Super Bundling, tiered pricing models, and improved customer engagement will be the ones to thrive. As the Bango Global Trends Report highlights, the future of subscriptions lies in delivering simplicity and convenience, making these services indispensable to everyday life.