In a surprising twist to the once-free world of social media, nearly a quarter (23%) of Gen Z Americans (aged 18-25) 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, according to new data from the Subscriptions Assemble study by Bango.
The report, based on a landmark study of 5,000 US subscribers, finds that younger Americans are at the forefront of a new phase of the subscription economy.
Gen Z is the most heavily subscribed generation, paying for nearly seven (6.8) services on average. And they’re not shy about the cost: their total annual spend tops out at US$940 per year.
They’re also most likely to subscribe indirectly via bundle deals through third parties, with almost three of their subscriptions (2.7) now paid in this way.
Why? Gen Z prioritises speed. 25% say it’s faster to subscribe indirectly through a bundle. Over a third (36%) also say they get a better price.
In fact, they’re the most likely to cancel or pause a direct subscription in favour of a better deal in a bundle, with 32% of Gen Z making that move vs 20% of the wider population.
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.
They are also 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 also much more popular with this group, with almost half (46%) paying for gaming service such as Xbox GamePass or PS Plus compared with only 22% of US subscribers overall.
Nearly half of Gen Z subscribers (48%) admit they lose track of their total subscription spend. And over half (52%) are frustrated they can’t manage all their subscriptions in one place.
That’s fuelling demand for smarter subscription bundling hubs such as ‘Verizon +play’. Over half of Gen Z (55%) would like their telco to manage all their subscriptions and a massive 73% say they’d be willing to pay more on their mobile or Internet bill if subscriptions were included.
Paul Larbey, CEO at Bango said: “Gen Z is known for being cost-conscious, so they are discovering real value and convenience in bundled services. That means buying services as bundles is likely to become a lasting habit with this generation.
“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.”
