More than one in five Americans cancelled a subscription after a price rise

Bango research finds 40% wanted to keep their subscription but had to cancel because they could not pause it or downgrade to a free option

More than one in five Americans (22%) cancelled a subscription following a price increase in the past 12 months, according to new research from Bango. But the findings also reveal an opportunity to help consumers keep the services they value: 61% would be more likely to retain subscriptions if they were available for less in a better value bundle.

The survey of 2,500 US adults finds that more than half (52%) still consider their subscriptions worth the money. 40% have wanted to keep a subscription but had to cancel because they could not pause it or downgrade to a free option. That experience rises to 50% among Gen Z.

The findings raise a familiar question: how do you keep the subscriptions you enjoy while making the monthly budget stretch? Better value bundles, different tiers and the option to pause could give people more ways to stay.

Finding a subscription that fits

Consumers are already changing how they subscribe to find an option that suits them. In the past 12 months, 17% moved to a cheaper plan, 12% switched to a cheaper plan with advertising, and 14% moved separate subscriptions into a bundle to save money. Among Gen Z, the proportion choosing a bundle rises to 21%.

Those choices sit alongside pressure on perceived value. Nearly half of Americans (45%) say their paid subscriptions offer worse value than a year ago, while 49% say they now pay extra for features previously included in their streaming subs, such as ad-free viewing, downloads or 4K quality.

For someone weighing up whether to cancel, the option to change their plan or pause their subscription could give them a reason to stay.

Different viewers, different trade-offs

An uninterrupted viewing experience or an ad-supported plan? Different viewers value different things.

70% of Americans believe paid subscriptions should be ad-free, and 72% say a subscription that starts ad-free should stay that way. At the same time, 58% would accept advertising in exchange for a discount.

Those preferences are reflected in what people buy. While 12% switched to a cheaper ad-funded tier in the past year, 8% upgraded to a premium tier to remove adverts, rising to 14% among Gen Z. Offering both lets customers choose the experience they value most, and change their plan when their priorities shift.

Free services also have a role in the mix. More than half of Americans (55%) say free services now meet some needs they previously paid subscriptions to fulfil, while 16% cancelled a subscription in favour of a free alternative in the past year.

For providers, that raises a practical question: could a free membership with fewer features or selected content help keep customers connected between paid subscriptions?

More ways to stay

For subscription providers and bundlers such as telcos and banks, the opportunity is to give people more control over how they access, combine and manage their favourite services.

Cancellation does not always mean a customer intends to leave for good. In the past year, 12% of Americans cancelled a subscription they intend to return to, rising to 15% among Millennials. That suggests an opportunity to maintain the relationship between paid subscriptions through free membership or more flexible ways to pause and return.

“Flexibility is more important than ever for retaining subscribers: 40% had to cancel a subscription they wanted to keep because they couldn’t pause it or move to a free option. That’s a valuable relationship worth preserving. Giving subscribers that flexibility they’re looking for could help them stay connected to a service they still want.

“People value different things in a subscription. For one customer, that might mean bringing their favourite services together through their mobile provider. For another, it could mean choosing a premium ad-free plan, switching tiers or keeping a free membership between paid subscriptions.

“Content brings people to a service. Subscription providers, telcos and banks can work together to sustain that relationship by giving customers more control over how they subscribe as their circumstances change.”

Giles Tongue, VP of Marketing, Bango