We’ve survived The Great Resignation, but could we be about to hit The Great Unsubscribe? 🤔 Subscription services have been sneaking their way into our lives (and our wallets) big time over the last few years. It’s been a subscription apocalypse, with everything from pet food to heated car seats (thanks, BMW 🙄) and they can add up fast. According to Pyments.com the average consumer in the US had five retail subscriptions at the end of 2021, costing an average of US$187 per month per person. 💸
It’s looking like some subscription services might be put on the chopping block as the cost of living rockets and more of us juggle to pay for the essentials. 🪓 Are Millennials really to blame? Over in the UK, a reported 1.5 million households are cancelling TV streaming subscriptions to save money, while earlier this year Netflix (NFLX) warned of losing up to 2 million subscribers in the second quarter. ‘TikTok and chill’ might not have the same ring to it, but it doesn’t cost $25 per month either.
Consumers are also watching their wallets ahead of their weight. Weight Watchers (WW) says their digital subscription revenue slimmed down in the first quarter of this year as ‘poor consumer sentiment’ drove subscription revenue to fall 6%. Interestingly, ‘poor consumer sentiment’ hasn’t been a problem for Onlyfans, which last month said they haven’t seen any slow down in subscribers. 😈
Over at Spotify (SPOT) subscribers have been holding up as well …for now. The company has said they expect premium subscribers to grow in the second quarter of 2022. Yuss, music is life! 🎶 Still, a report by research firm Kantar last month suggests younger streamers are increasingly turning down the music, with three of the top five reasons for cancelling subscriptions linking back to saving money. Investors will certainly be listening out for any signs of trouble as quarterly earnings get reported over the next month. 👂