AI subscriptions on the rise among tech-savvy Millennials in the US, research shows
Almost one-fifth of Americans aged between 25 and 34 now pay for an artificial intelligence (AI) subscription, indicating the emerging popularity of the technology among consumers, according to new research.
Paul Larbey
Cambridge, UK-based mobile payment platform provider Bango commissioned research agency 3Gem to survey 5,000 people in the US about their streaming and subscription service habits.
The report, entitled Subscriptions Assemble, shows that 18% of Millennials have signed up to AI services such as ChatGPT Pro. Within that age group, such subs equal or better the popularity of monthly fitness and tech payments.
Gen Z consumers, aged 18-24, are also contributing to the rise of AI subs, with 15% signing up for apps and products.
Across all age groups, 9% of those polled now have AI subscriptions, a figure that still lags far behind the most popular category of SVoD streaming plans (75%), retail (62%), music (43%) and gaming (22%).
Bango’s report shows that nearly a quarter of US subscribers (23%) spend over US$100 per month on streaming and subscription services (over US$1,200 per year), with the average American paying for 5.4 subscriptions – two of which are now paid for as part of a bundle package or similar deal.
More than half of subscribers (55%) get these ‘indirect’ subscriptions via their cell phone providers, while 34% access and pay for them through a retailer, such as Walmart (Walmart+) or Amazon (Prime).
The survey shows that bundled deals are becoming more popular due to their convenience. 41% of subscribers are annoyed they can’t manage all of their subs in one place, while 62% say they would rather have a bundle than sign up for individual services.
Paul Larbey, CEO of Bango, said: “Our research reveals a major shift in the multibillion-dollar subscription industry. For the first time, America is moving beyond the subscription economy and into a bundle economy, where platforms aren’t competing in isolation but teaming up to offer more value to subscribers.
“That’s why we named this report Subscriptions Assemble – it’s not about the streaming wars, it’s about collaboration. Streaming platforms, gaming services and even AI subscriptions are now working together, building on each other’s ecosystems and tapping into the audiences of telcos, retailers, and even banks.”
