- C+R Research found that consumers consistently underestimate their monthly subscription bills.
- A recent study found that shoppers were off by an average of $133 a month.
- A whopping 74% of respondents said they struggled to remember recurring monthly subscriptions.
Subscription services could be subtly eating away at your savings. At least that's what a new study from research firm C+R Research has found.
Currently, shoppers can set up subscriptions to meet all sorts of needs, from watching original programming on Netflix, Apple TV+, Hulu, and Prime; to getting an influx of new styles with Birchbox or Rent the Runway, to listening to music on Spotify. But all of those options could be costing consumers more than they think.
The research firm surveyed 1,000 consumers from April 22 to May 2, 2022. Survey organizers gave participants 10 seconds to come up with a response to a question about how much money they spend every month on subscription services. They found that on average, "consumers underestimated their monthly spend on subscriptions by $133." Initial estimates averaged out to $86, while the participants' average "actual monthly spend" was more than 2.5 times higher, at $219. Thirty percent of respondents were off by $100 to $199 on their estimates.
Mobile-phone subscriptions were the "most forgotten" type — with 31% struggling to remember this category — followed closely by internet subscriptions, television and movie streaming subscriptions, and Amazon Prime.
The study found that 74% of respondents "say it's easy to forget about recurring monthly subscription services charges," and that 72% of the survey participants have set all their monthly subscriptions to "auto-pay."
And all this confusion around subscriptions is taking a toll, according to C+R's findings; 22% of respondents told the research firm that they felt overwhelmed dealing with their multiple subscription services.
In April, streaming giant Netflix revealed that it lost subscribers for the first time in more than a decade. Back in 2021, a study found that Showtime's subscription service was at risk for losing audience members. With so many options and subscription bills piling up, some of those woes could continue for subscription services as consumers reassess their options.