Recurring subscriptions have changed how we pay for digital content. And, while each service might only demand a couple of our hard-earned bucks at a time, the costs can quickly add up.
According to a report citing data from mobile measurement firm Adjust, the average person in the U.S. spends $20.78 a month on app subscriptions. And, given that this just an average, many spend a whole lot more than that.
The report suggests that people aged 25 to 34, meaning Millennials and older Gen Z, spend the most on subscription apps, approximately $25.85 per month. Meanwhile, the lowest demo are, unsurprisingly, those aged 55 and over, who spend around $13.97. The most common subscriptions are streaming apps, while games and news follow in second and third place.
Things ramp up significantly when it comes to in those who subscribe to on-demand entertainment services. These services, which include the likes of Netflix, Amazon Prime, Hulu, Disney+, and YouTube TV (the top five in the category), average $33.58 per month.
“Subscriptions are one of the key strategies that many of our clients are moving to,” Adjust VP Katie Madding told VentureBeat. “The big transition to subscriptions began in 2018. Subscriptions were about 21% of revenue last year, or $4.6 billion in 2019. With COVID-19, we are seeing that grow even further.”
App subscriptions are surging
The fact that subscriptions surged this year is little surprise. People stuck home have had, in many cases, more time to watch Netflix and the likes. Even though the economy has taken a tumble this year, apps have actually done very well.
Apple, for its part, has embraced Services under the leadership of Tim Cook. As iPhone sales have plateaued, Services are one way that Apple has continued to grow its revenue by squeezing more juice out of existing customers. Apple TV+, Apple Arcade, Apple News+, Apple Fitness+, Apple Music, and iCloud all allow Apple to gain recurring revenue from customers.
The VentureBeat report cites analytics company Apptopia as claiming that app subscriptions generated more than $200 million in August alone.
Which subscription services can’t you do without? Do you think this is a good model for customers or one that, in the end, will wind up being a big negative? Let us know your thoughts in the comments below.