Americans are less likely to cancel subscriptions like Netflix
Despite looming economic headwinds, approximately two-thirds of all consumers surveyed said they would cut back on their spending from the general economic situation at hand, but only about 25% intend to do away with Spotify, Netflix, or Amazon Prime subscriptions.
"It's clear that people value their streaming subscriptions more than ever," said Kerri Norton, executive vice president of content and strategy at the National Research Group, in a statement. Approximately half of this same group reported that subscriptions constitute a good amount of their monthly spending as a whole.
Other statistics from the National Research Group's report reveals that approximately 24% of all Americans "password share" or utilize streaming services that they do not personally subscribe to.
On a monthly basis, consumers reported that $10.60 is the average monthly maximum amount that they would want to expend toward subscription services that had advertisements. They also said that it is generally challenging to keep track of the various streaming services that have come out in the past several years. It has also been reported that it is generally difficult to manage and keep track of rising costs of Netflix especially.
"It's the rare person who doesn't have at least one sneaky charge they've forgotten about," Kathryn Hauer, financial planner with Wilson David Investment Advisors in Aiken, South Carolina, told CNBC. According to a survey conducted by C+R Research, most consumers downplay or misjudge the exact amount that they spend on monthly subscriptions by about $100.
Despite consumers' general lack of desire when it comes to cutting back on their monthly subscription expenses, financial experts have revealed that it would be best for consumers to cut back on these subscriptions in the face of financial hardships, and would save them much money in the long run.