Bango, which helps companies improve monetisation of their digital products and services, has just published a landmark study into the subscription behaviour of US consumers. Based on data from 5,000 American, the ‘Subscriptions Assemble’ study reveals several intriguing new trends – particularly among Gen Z (18-25).
The primary message from the report is that Americans are pivoting towards bundled subscription services – because it is easier and often cheaper than signing up to services on a stand-alone basis. But equally compelling is the discovery that Gen Z are spending big on subscriptions – including to social media platforms. Overall, this generation is now spending around $940 a year on subscription services.
There has long been a perception that Gen Z has no money – and that social media is free. But the Bango report suggests a growing willingness among younger demos to pay for their favourite social content. According to Bango “nearly a quarter (23%) of Gen Z Americans now pay for a subscription to social media platforms such as Snapchat and X. That’s nearly double the rate (14%) of US subscribers at large.”
Overall, said Bango, Gen Z is the most heavily subscribed generation, paying for nearly seven (6.8) services on average. Music subscriptions top the subs list for Gen Z, with 59% saying they subscribe to at least one – compared to 43% of older American subscribers. But they are the only age group for which streaming services such as Netflix or Disney+ don’t come out on top, with 56% of Gen Z paying for at least one of those, compared with 75% of US subscribers as a whole.
Gaming subscriptions are popular with this group, with almost half (46%) paying for gaming services such as Xbox GamePass or PS Plus compared with only 22% of US subscribers overall. But new markets are also opening up, with 1 in 10 subscribers now paying a monthly subscription for an AI service like ChatGPT (9%).
As noted above, Bango is keen to push the point about the trend towards bundling. It said that over half of Gen Z (55%) would like their telco to manage all their subscriptions and 73% say they’d be willing to pay more on their mobile or internet bill if subscriptions were included. Of interest to digital first platforms, however, the report also said 1 in 5 Gen Z respondents would prefer this sort of all-in-one subscription service to be offered by social media platforms like Meta, TikTok or X.
“Gen Z is known for being cost-conscious, so they are discovering real value and convenience in bundled services,” said Paul Larbey, CEO at Bango (pictured). “But what’s surprising is that despite their cautious approach to spending, young people are willing to pay extra for premium access to social media. Instead of just consuming content, they’re enhancing their online presence and social connections. Platforms like Snapchat+ 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.”
Given the differences between Gen Z and older demos, Bango suggested that we may be witnessing a paradigm shift in consumer behaviour: “Could this mark a shift in the dominance of streaming giants as Gen Z’s influence grows? Possibly. This generation doesn’t just consume content, they create it, remix it, and share it across social platforms where identity and influence matter as much as passive entertainment.”
Bango also said: “Social platforms aren’t just spaces for scrolling anymore, they’re evolving ecosystems of commerce, content, and community. Imagine a bundled TikTok+ subscription that includes premium creator content, music streaming perks, and early access to game drops. It could be closer than we think.”
