For years, Americans embraced the subscription model for a la carte services, thinking they’d save money by only paying for what they use and watch. But new research suggests the subscription boom is finally bursting, as people are now cutting back on steaming services, food delivery perks and digital extras.
According to a new survey from Self Financial, the average U.S. household has trimmed paid subscriptions down from 4.1 in 2024 to 2.8 now - a drop of 32% in just a year. So, what’s behind the end of the “subscribe to everything” era? Constant price hikes are a big reason.
- Household spending on subscriptions dropped from $40.39 a month last year to $37, a decrease of 8.4%.
- Now nearly half of subscribers (49.7%) say any more price increases would be “unacceptable.”
- The top reasons people are canceling subscriptions are all financial, with the high cost of living at number one (34.6%). Prices rising too much comes in a close second (32.9%), followed by people just cutting expenses (26.3%).
- Convenience is the biggest reason people keep subscriptions (58.4%), but even that has its limits. Last year, 51.8% said subscription services offered quality content, but this year, only 40.9% feel the same.
- The crackdown on password sharing also hasn’t led to more customers as companies hoped for. Close to half (45.7%) of those polled say they’re now more likely to stream content illegally because of rising costs, rather than become a paying subscriber.
- Apple TV+ is the streamer subscribers are most likely to cancel, 42% say they’re planning to drop it. Starz is second, followed by Paramount+.
- Even after cutting back, a lot of Americans are still paying for subscriptions they don’t use. People have an average of 0.8 unused subscriptions, costing them $10.57 a month, or about $127 a year that’s just going to waste.
- Overall, 40.8% of people canceled at least one subscription in the last year and another 31.2% plan to cancel more.