Barclays Survey Finds UK Consumers Plan to Cut Subscription Spending
What happened
A survey by Barclays found that UK consumers, including those in Scotland, plan to reduce their use of subscriptions. The report states that 88% of UK consumers currently have at least one subscription, with the average subscriber spending £50.60 a month. Spending on digital content and subscriptions has risen by 47.5% since January 2020.
From heraldscotland.com
Why it matters
The shift in consumer behavior from ownership to access has been a major trend, but rising inflation and a prolonged cost-of-living squeeze are making households more selective about discretionary purchases. This trend could put pressure on the recurring revenue models of digital service providers.
From heraldscotland.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- NetflixSpeculative
Netflix might see reduced subscription revenue as consumers cut back on digital services.
- AmazonSpeculative
Amazon might see reduced subscription revenue as consumers cut back on digital services.
- Disney+Speculative
Disney+ might see reduced subscription revenue as consumers cut back on digital services.
- Spotify TechnologySpeculative
Spotify Technology might see reduced subscription revenue as consumers cut back on digital services.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Consumer cost-of-living squeeze may reduce Amazon Prime subscriptionsAmazon may face reduced subscription demand as consumers cut back on discretionary spendingPossible
- Consumer intent to cut back may challenge Netflix's subscription revenueReduced consumer willingness to pay may challenge Netflix's subscription revenuePossible
Keep exploring
The entities involved
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Scotland
country in north-west Europe, part of the United Kingdom
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Netflix
American subscription video on-demand over-the-top streaming service
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Barclays
British bank