If you’re feeling subscription fatigue, you’re not alone. A 2022 survey conducted by Kearney Consumer Institute found that about 40% of people using subscriptions believe they’re spending too much money on these services. In fact, the average monthly amount spent on subscriptions is $219, according to a C+R survey commissioned in 2022.
Analysts predict that the subscription economy will be a $1.5 trillion market by 2025, up from $650 billion in 2020. Great news for retailers and businesses of all sizes who plan to expand their growth, but what about you and your wallet? Are subscription services worth the cost? Let’s dive in and learn more.
Why People Use Subscription Services
In the past, subscription services were dominated by services like gym memberships, newspapers, and magazines. And we all saw the rise of subscription services during the pandemic since we were stuck at home seeking more variety coupled with convenience. When used efficiently, subscription services offer these benefits:
Money savings on essentials
An Amazon Prime subscription offers free shipping for most items. For products you buy frequently, you can save up to 15% (and more, in some cases) when you opt for the “Subscribe and Save” option. Many other online retailers have jumped on the subscription services bandwagon. Chewy – the retailer of pet food and other pet products – offers subscriptions with a deep discount.
Saved time
Going to a store to buy products can take an hour or more of your time. Subscription services give you a way to automate your everyday shopping and save time spent driving and shopping.
Access to previously cost-prohibitive software
Software-as-a-service (SaaS) is also a useful option for saving money. For example, creatives who use Adobe Photoshop used to have to shell out hundreds of dollars for the program. Now, Adobe only sells its software suite as a subscription service with a monthly fee.
This is convenient for individuals on a tight budget, but many graphic designers and photographers are irritated that they can’t pay a one-time fee and have the program on their computers. Microsoft Office is another expensive software that now offers subscriber access with a monthly fee.
Convenience
If there are products you know you need every month, it can be convenient to have them delivered directly to your door. You don’t have to worry about running out of essentials.
Ad-free streaming
For years, we all endured commercials on cable TV and ads on sites such as YouTube. Now, a family can say goodbye to mid-show interruptions with a subscription costing only $17.99 per month. Steaming services such as Netflix and Hulu offer more affordable plans with ads or premium plans for ad-free streaming.
Premium entertainment
When it comes to streaming dollars spent, people place a high value on entertainment. Netflix is the most popular subscription service in the world. As of 2023, Netflix has approximately 225 million subscribers worldwide. Disney+ isn’t far behind, with 152.1 million subscribers in 2022.
Access to more of what you love
For example – music platforms. Subscribing to Spotify or Apple Music allows you to have (nearly) all the music of the world at your finger tips with curated playlists or ones you craft yourself. And remember we mentioned ad-free streaming? It’s a perk here too; enhancing your music listening experience without having to listen to radio commercials wherever you go.
Types of Subscription Services
You can find subscription services for nearly everything, from razors to learning tools to weight loss apps. Most subscription services fall into these categories (with examples):
- Video streaming: Netflix, Hulu, Disney+, HBO Max, Crunchyroll, Apple TV, ESPN+
- Music streaming: Spotify, Amazon Music, Apple Music
- Online delivery: Amazon Prime, Walmart+
- Books and audio: Audible, Scribd, Kindle Unlimited
- Meal kit delivery: HelloFresh, Blue Apron
- Curated boxes: Ipsy (beauty), BarkBox (pet supplies)
- Software-as-a-Service (SAAS): Microsoft 365, Adobe Creative Suite, Dropbox, Google Drive, iCloud
- News: Washington Post, New York Times
- Education: Duolingo, Skillshare, Master Class
- Wellness and personal care Peloton, Fitbit Premium, Headspace, BetterHelp, WeightWatchers, Dollar Shave Club, MyFitnessPal, Calm
- Home security: Ring, Nest
- Gaming: Xbox Game Pass, Nintendo Switch Online, PlayStation Plus
See what we mean? The options are endless. But are any (or all) of these subscription services worth the cost? The short answer is yes if you actually use them — they’ll save you time and money, and add value to your life.
How to determine if a subscription service is worth the cost
Forbes surveyed more than 1,000 Americans to determine which subscription services offer the most value. In order, the subscription services most valued by survey respondents are:
- TV and video streaming
- Music
- Delivery
- Gaming
- Education
- News
- Women’s products
- Cloud storage
- Home security
- Books and audio
If any of these are important to you, the key is to determine which ones add the most value. Here are some of the things to consider when making decisions about which subscription service to keep or cut.
1. Make a decision based on facts, not your intentions
When you sign up for a Duolingo subscription, you may have the best intentions in the world. However, do you really have time to learn a foreign language right now? Will you actually use the service? Life is busy, and it’s not always the right time to take on a new project.
2. Review the perks
Does subscribing to YouTube Premium save you time? Time is money. If you have to watch videos for work, ad-free YouTube can save you lots of time. Alternatively, if you mainly use YouTube to watch the occasional how-to video, suffering through ads might not be a big deal.
3. Calculate the break-even point
When trying to decide if a subscription service is worth it, know your break-even point. We’ll use Amazon Prime as an example. In 2023, Amazon Prime costs $139 per year or $14.99 per month. If you have lots of products delivered, you will quickly break even by saving on shipping charges.
Within Amazon is another subscription service: Kindle Unlimited, which costs $9.99 per month. If you read even one book a month, Kindle Unlimited is a good value because an ebook can cost $12.99 or more. If you’re a voracious reader, Kindle Unlimited is a huge value.
4. Be careful about paying for something twice
Let’s say you have a favorite TV show and you subscribe to Paramount+ to watch it. When reviewing your Amazon subscriptions, you realize that you’re already paying for Paramount+ through Amazon.
5. Revisit your subscriptions frequently
Go through your bank or credit card statements to see which subscription services are coming out of your account. Cancel the ones you don’t use or don’t need. Don’t forget your phone subscriptions. Revisit these often and cancel any that don’t give you value. There are also apps and services that can help you get rid of unneeded subscriptions.
So, are subscription services worth it?
Ultimately, it depends on your individual needs and preferences. Going through the steps we outlined above can help you determine if your favorite subscriptions are really worth the money you’re paying. Pro tip – make sure to read the reviews of your intended subscription service and see what their customers are saying to help make your informed decision. If they enhance your life, save you time, and offer value, there’s no reason you should have to drop them.
