Americans who fall within the “Generation Z” age demographic pay for more subscription-based offering compared to older Americans — and the one subscription they’re most-likely to have involves streaming music, according to a new consumer survey.
The report, released by Bango this week, finds Generation Z (ages 18-25) have subscriptions to around seven services, and they spend nearly $940 per year for the privilege.
The one subscription Gen Z’ers gravitate to the most is streaming music: Fifty-nine percent said they pay for a music rental service like Apple Music, Spotify, Amazon Music or Tidal, compared to 43 percent of older Americans.
Gaming subscriptions were also popular, with 46 percent of Gen Z saying they pay for a service like PlayStation Plus, Xbox Game Pass or Apple Arcade.
Streaming video subscriptions were at the top of the list for every age demographic surveyed by Bango, except for Gen Z, the company said. Fifty-six percent of Gen Z consumers pay for a service like Netflix, Disney Plus or Prime Video, compared with 75 percent of American consumers as a whole.
With the consumer survey being produced by Bango, things were eventually going to steer toward the company’s bread and butter service offering: Effectuating subscription-based bundles that help companies attract and retain consumers, and potentially help customers save money.
Bango already works with a number of telecommunications providers like Verizon and Optus to develop and launch subscription management platforms (Verizon Plus-Play and Optus SubHub). There, customers of Verizon and Optus can purchase subscriptions to streaming video products and similar services, and the companies have the opportunity to bundle different services together at varying price points, often lower than the retail cost of each service on it sown.
Nearly half of all Gen Z’ers surveyed by Bango said they’re likely to lose track of the subscriptions they pay for, and 52 percent said they’re frustrated they can’t manage their subscriptions from a single platform.
Nearly three out of four Gen Z consumers surveyed by Bango said they’d be willing to pay more on their mobile or Internet bills if the companies offered a way for them to purchase and manage subscriptions to streaming video products and other services, Bango said.
“Gen Z is known for being cost-conscious, so they are discovering real value and convenience in bundled service,” Paul Larbey, the CEO of Bango, said in a statement. “That means buying services as bundles is likely to become a lasting habit with this generation. Predictably, these consumers look for subscription ‘staples’ — like music and streaming — through bundles to keep costs manageable.”
With Gen Z’ers typically considered among the most cost-conscious consumer demographic, Larbey said it was “really surprising” to find younger Americans were willing to pay more on their phone and Internet bills if they could manage different types of subscriptions.
While streaming video has long been a focal point of some telecoms that work with Bango, the company sees opportunities in other area, including social media-based subscriptions. X (formerly Twitter), Meta Platforms (Facebook, Instagram) and Snap (SnapChat) all offer monthly subscriptions with premium features and perks — and nearly one out of four Gen Z consumers pay for at least one social media subscription, Bango said.
“Despite their cautious approach to spending, young people are willing to pay extra for premium access to social media,” Larbey noted. “Instead of just consuming content, they’re enhancing their online presence and social connections. Platforms like Snapchat Plus are now starting to be offered by telcos, showing how the bundle helps social media subscriptions to meet Gen Z’s demand for impact and convenience.”
The full report from Bango is available to view by clicking or tapping here.
