Pandemic surge in subscribing to digital services

The coronavirus pandemic has prompted large numbers of consumers to sign up for digital subscriptions.

any of those in the 18 to 34-year-old age bracket have more than four subscriptions.

A subscription to an entertainment service is the most popular, according to research commissioned by digital bank N26.

In a year when many tightened their purse strings, Irish consumers committed to average subscriptions costing €41 a month.

Banking and financial services are among the top three subscription services for consumers.

Three in five would consider switching to a new service if their bank increased fees for basic services.

A third of consumers in this country have more digital subscriptions than they did at the start of the pandemic, said the survey, conducted by Sapio Research of 1,000 consumers across Ireland.

The growth of the subscription culture is particularly clear among younger consumers, suggesting that the pandemic may have spawned a generation of super-subscribers.

Four out of 10 people between the ages of 18 and 24 increased their number of subscriptions, with lower numbers of the over 65s signing up to pay subscriptions. Younger people also spend more on their subscriptions.

Those in their late teens and early 20s spend an average of €48.67 per month, while over 65s spend a little over half of this, at €26.83 per month.

N26 chief operations officer Adrienne Gormley said the older cohort of consumers are becoming familiar with the benefits of subscriptions as well.

“As the era of subscription services matures – and there is wider familiarity with the simplicity and value that digital subscriptions offer, I fully expect to see more consumers expanding their selection of subscriptions beyond entertainment into lifestyle, health, financial services and beyond,” she said.

Close to half of Irish consumers say the most important benefit for them is freedom to cancel at any time without a penalty, while a third want a fixed price.