As consumer behaviour started the 'unbundling' (cord cutting) of the cable and satellite networks in favour of eating their content in bite size chunks from a variety of 'paywall' streaming and content providers we are now seeing the same thing happen as the consumer looks to save finances.
A trend that started as a result of the Covid chaos and is now gaining further trajectory as a result of another global financial crisis.
Today they're not only trying to juggle the household basics of food and running the car they're also wrestling with multiple payments and subscriptions for access to paywall and gated content.
As I predicted some years ago (link here when finances get tough and technology improves consumers look to cut those discretionary subscription's because they have anxieties and confusion around not only the aggregated cost but also who in the family owns what along with a better understanding of the ROI?
I'm pretty sure there's a software house out there currently working on an App that helps you monitor usage and value from each of these subscriptions - if not there should be!
It's obvious that the rights and license owners of the content we all want to consume from Movies, TV shows, and Sport need to be able to support the cost.
After all we still pay for Cinema, Theatre, and Match Day tickets so why not?.
"Netflix has teamed up with Microsoft to offer a cheaper subscription plan to customers that will show adverts".
The streaming giant says the service will be an "addition" to its existing plans, which do not include adverts. It lost 200,000 subscribers between January and March, compared to the 2.5 million analysts had been expecting the firm to add in the period. Netflix also now expects to lose a further two million subscribers between April and June. source BBC.com
Spotify has a similar model, where music is free if you're happy to sit through commercials.
Personally speaking I pay for a family package for 'Netflix', 'Spotify' and even 'mobile phones' and just for those I'm paying circa £120 a month - £1440 per year. If I add in all the other stuff that seems to just go out of the bank account I'm sure I would be a lot more vigilant.
What about the business model of the ''white paper'?
Is the subscription model for gated content really sustainable when distribution platforms on social media are educating the consumer to pay for nothing - not even access?
Have you also noticed how many companies use headline clickbait to get you to to view 'gated' content. This is the stuff that draws you in, gives you free access to a few articles and then blocks you out unless you pay the subscription demand.
We still see brands and companies who choose to promote the latest 'white paper' on 'how to boil your kettle quicker than ever before' - does this still work today - not the kettle thingy but the 'White Paper'?.
In exchange for access they require your personal info in the form of e-mail, title, number of employees, inside leg measurement and where you went on holiday with Auntie Beryl when you were twelve.
As with the global growth in consumer behaviour adopting take up of 'free to use' social networks around the globe combined with Gen Z arriving into the workplace is it still a viable long term business model to get people to 'pay' for that content.
Here's a few obvious tips that might help you to change behaviour, save you and your family some of that hard earned income and in turn might just nudge these 'white paper' mindset companies to consider an alternative way forwards.
1) Cancel ahead of time: Many of us wait until the last minute to cancel a subscription, but there is generally no drawback to ending payments ahead of time.
2) Audit your subscriptions: Subscription charges can easily be overlooked when they carry generic labels like “Amazon” or “Google.”
Your welcome.