Subscription, streaming spending is rising despite cost worries

Subscription spending is on the rise as more consumers are utilizing entertainment and retail services, a new analysis shows.

Bank of America Institute economists analyzed aggregate credit and debit card spending data from 70 million consumer and small-business accounts to find that subscription spending rose 7.7% year over year in July, outpacing overall credit card growth by more than a percentage point and a half for the past two years.

Entertainment and retail subscriptions were the highest cut of that increase, accounting for roughly 43% of all subscription spending.

And Gen Z showed the fastest subscription spending growth, rising nearly 14% year over year. Gen X is the biggest spender overall, followed by older Millennials.

"Despite the fact that consumers are quite cost-conscious, they're still finding room in their budget for convenience, especially when it comes to subscriptions," Joe Wadford, an economist at Bank of America Institute, told USA TODAY.

The largest portion of growth is in entertainment streaming services, such as music, TV, movie and video game streaming as well as large retailer subscriptions, the Bank of America Institute analysis showed. Entertainment and retail subscriptions made up around 43% of subscription spending in 2026, up slightly from 41% in…

Original source: https://www.usatoday.com/money/