US and UK Consumers Shift Toward Flexible Subscription Models
Chargebee and Self Financial report a decline in paid subscriptions and a growing consumer demand for usage-based pricing due to rising costs.
Rising costs and a high cost of living are driving a significant shift in how consumers manage paid subscriptions in the United States and United Kingdom. Research from Chargebee and Self Financial indicates that users are increasingly seeking flexibility and reducing their total number of services to mitigate financial pressure.
Data from Self Financial shows that the average number of subscriptions per U.S. household dropped 32% in one year, falling from 4.1 in 2024 to 2.8. Monthly spending also decreased from $40.39 to $37. These declines are fueled by price hikes and cost-of-living concerns, with Apple TV+, Starz, and Paramount+ identified as the services most likely to be canceled. Furthermore, 45.7% of polled individuals report a higher likelihood of streaming content illegally rather than paying for new subscriptions.
Simultaneously, a Chargebee survey of 1,454 consumers reveals a strong preference for alternative pricing structures. Approximately 70% of respondents expressed interest in usage-based pricing, and 67% are open to switching existing services to hybrid or usage-based models. This trend toward flexibility is further evidenced by the 58% of users who choose to pause subscriptions instead of canceling them entirely, as subscription prices have climbed by 15% to 25%.
