What: Over 1.2m subscription payments have been canceled since 2021, half a million of those due to consumers feeling the financial pinch.

Why it is important: Worldwide streaming subscriptions surpassed 1bn (a 26% increase) during the pandemic, a trend attributed to people wanting at-home entertainment.

Similar hikes were seen across other subscription services, from productivity software to razor blades and meal kits. ING research found the average household in Europe spends EUR 130 a month on subscription-based products and services.

However, the cost of living has increased and has caused consumers to evaluate how many subscriptions they’ve built up. Rising inflation and energy prices has impacted the nature of the cancellations, for instance, many have been canceling what could be called “surplus subscriptions” or luxury entertainment.

Surges in cancellations aren’t always what they seem, it is likely caused by spontaneous customer decisions.

“I call them the lost, the confused, and the angry… I think the angry group cancelled on Monday when they’ve seen the price hike. By Friday, they are calling back to re-subscribe to their service when they realise they want to watch the latest series release,” she says.

Consumers are being pickier but subscriptions should continue to boom.

To help big and small subscription companies to survive, it’s important to make sure they are keeping a focus on customer retention, not only acquisition, to stay in the game.

Is the pandemic boom of the subscription economy over?