Consumers struggle with unused subscriptions, report finds

A significant number of consumers are inadvertently spending money on unused subscriptions, according to the latest findings presented in a report by Bango, a company specializing in subscription bundling technology. The report, titled “Super Bundling: Global Trends,” reveals that approximately one-third of American subscribers are paying for subscriptions they rarely utilise, with a notable 35% having lost track of their monthly subscription expenditures.

The study surveyed over 15,000 subscribers across the United States, Europe, and Latin America, highlighting a global trend where consumers are struggling to manage and monitor their subscription services effectively. In the report, American consumers are identified as the most prone to this oversight, closely followed by European and Latin American subscribers, who report losing track of their spending at 28% and 27% respectively.

Among the significant trends identified is the increase in what the report terms “Vampire Subscriptions.” These are long-forgotten subscriptions that continue to deduct money from consumers’ bank accounts without their continued awareness or use of the services. In the United States, this issue is particularly prevalent, with 44% of participants admitting to difficulties in remembering how they signed up to these subscriptions. Similarly, 39% of subscribers in Latin America, along with a third of European subscribers, report facing similar challenges in managing their multiple subscriptions.

To address these challenges, the concept of ‘super aggregation’ has emerged as a potential solution. This involves consolidating different subscriptions into a single platform managed by a ‘content hub’ or ‘platform operator,’ potentially offering loyalty discounts. In the US, services like Verizon +play are examples of these full-service content hubs, although they have yet to see widespread adoption in Europe and Latin America, despite robust consumer interest in these regions.

Paul Larby, CEO of Bango, elaborated on the benefits of this model: “What’s clear is that subscribers want choice and flexibility without the annoyance of juggling multiple accounts and bills. Super Bundling through content hubs finally brings that level of flexibility — aggregating multiple services into one single platform with ease. It’s an approach that puts the subscriber first while allowing subscription services to share users rather than fighting over them.”

The report indicates a significant consumer demand for such unified subscription platforms. In Europe, 46% of respondents indicated that they would engage more with their subscription services if an all-in-one solution was available. This preference is even more pronounced in the United States, where 54% of subscribers express interest in spending more time on their subscriptions through a unified platform, and in Latin America, where support is notably higher at 68%.

The Bango report underscores a shift in consumer expectations and highlights an opportunity for service providers to innovate by simplifying subscription management. This change could enable subscribers to enjoy a more streamlined and cost-effective experience while allowing service platforms to expand their user base by cooperating rather than competing for subscribers.

Source: Noah Wire Services