Feeling oversubscribed? Why Americans are considering cutting their subscriptions

As cost-conscious Americans tighten their belts in an uncertain economy, they are starting to notice how quickly monthly subscription charges add up.
Feeling oversubscribed? You are not alone.
Most things these days – food delivery, ride hailing, TV and music streaming, fitness classes, digital storage apps – seem to come with a monthly payment.
Few people have a system to manage the steady stream of autopilot charges on their credit cards or to track price hikes. What's more, they underestimate how much they spend each month on subscriptions.
But as cost-conscious Americans tighten their belts in an uncertain economy, they are noticing how quickly these monthly charges can add up. Some 6 in 10 U.S. adults are considering breaking up with some of their paid subscriptions, according to a recent CNET survey.
'When people's budgets are tighter, they start asking themselves: Do I need to be paying over time for this?' asked Marco Bertini, a marketing professor at Esade, a university in Barcelona, who was not affiliated with the CNET survey. 'It just feels like a heavier burden.'
What is the average amount of money spent on subscriptions?
Cassandra Navarro of Scottsdale, Arizona, canceled her Hulu, Amazon and DoorDash subscriptions earlier this year.
Streaming services have been too quick to drop titles and raise rates, she said, and she'd rather shop in person at Walmart or pick up a takeout order directly than deal with the extra costs associated with delivering goods directly to her doorstep.
Navarro and her husband aim to cut out more music and movie streaming services after they move into their new home and have more space to collect CDs and DVDs.
'It just all adds up so much,' Navarro, 30, told USA TODAY. 'We don't mind having one or two subscriptions, but when you have so many subscriptions at once, you start to feel like you don't have control of your life anymore. … You can't keep track of your own finances.'
The average American spends over $1,000 a year on subscriptions – $200 of it on unnecessary or unused subscriptions, according to the CNET survey.
Why is the subscription model so popular?
Nearly 75% of companies that sell directly to customers offer some sort of subscription, according to an industry and background note coauthored by Harvard Business School marketing professor Elie Ofek.
The model makes sense in certain industries and can help consumers access big-ticket items, according to Bertini. But companies 'cannot and should not fit subscriptions to everything.'
"There are some places where it makes sense, and some places where it doesn't," Bertini said, adding some bank on consumers simply forgetting the recurring charge.
Those companies risk losing customers, especially as Americans tighten their purse strings. Retail sales were down 0.9% from the previous month in May, following a 0.1% dip in April, according to the Commerce Department.
"Disposable income, during tough times, is a little more uncertain. It may be higher one month, lower another, then maybe I'm unemployed. Do I want to have a recurring expense when my disposable income is a bit fluctuating?' Bertini asked.
McCarthy said the biggest risk to subscription companies is a lack of new subscribers, rather than a drop in the current subscription base. And that drop off will hit certain industries harder than others.
"If you're a utility like a telecom provider, (the risk is) probably pretty low," he said. "If you start moving toward streaming services, I think the risk goes up. When you move toward a box subscription, the risk becomes pretty high.'
Is the 'click to cancel' rule in effect?
While subscription companies aren't immune to the effects of increasingly cost-conscious consumers, McCarthy says subscription-based companies are expected to weather economic turmoil better than purely transactional businesses.
'It takes effort to cancel, where it takes no effort to not purchase,' he said, adding that subscription companies fared well during the Great Recession. Netflix, for instance, closed the fourth quarter of 2008 with a 26% year-over-year leap in subscribers, and another 31% increase in the fourth quarter of 2009. Software company Salesforce also saw a jump in revenue and its customer base between 2008 and 2009.
But a new rule from the Federal Trade Commission could make it much easier for consumers to click "unsubscribe."
The agency's "click to cancel" rule, adopted last year under former Democratic Chair Lina Khan, requires businesses to make it as easy to cancel a service as it was to sign up. In other words, if a company allows you to sign up in two clicks, canceling should take no more than two clicks.
Originally set to go into effect in May, the rule has faced legal and political challenges. Business associations have sued to block it, arguing it places too many burdens on businesses. Andrew Ferguson, the current Republican FTC chair, said he voted against 'click to cancel' because it came during the lame-duck period.
The FTC has delayed enforcing the rule until July to give companies more time to comply.
"I really hope that sticks, because this is hurting people," Khan said during an appearance on the 'Pablo Torre Finds Out' podcast in June. "Nobody should be stuck paying for a subscription that they either never signed up for or want to cancel."
Will 'click to cancel' get canceled? New FTC rule faces legal, political challenges
How to cancel an unwanted subscription
Looking to trim monthly expenses? Here's how to break up with paid subscriptions.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Forbes

37 minutes ago

• Forbes

Is Using Tech To Make Your Own Sparkling Water Worthwhile?

This portable system makes instant sparkling water Americans apparently love effervescence. According to Google's Gemini, the global sparkling water market was valued at about $42.62 billion last year. And it's projected to grow significantly, with estimates maxing it out at $108 billion by 2032. That's a lot of burps. So it shouldn't shock you that companies are flocking to get in on a piece of and Kirkland flavored sparkling water are mainstays in our home. The labeling implies there's no sugar – just essentially water and CO2. So it's way better for you than carbonated soda. And to me, it's so much tastier than plain drinking water, with all the used to have a Sodastream unit, in which we made our own seltzer water by carbonating ordinary tap water and adding flavor syrup. Somewhere along the way, it broke or stopped working. So we just went back to buying cans of the good stuff. Of course, this habit can get a little pricey. But more than anything, I really just don't like carrying the heavy cases of it in from the car, once we get home from I heard about Aerflo, which brings portability to the category. It's a single drinking water bottle in which the top holds a refillable CO2 canister -- making it a portable, zero-waste carbonation system. It's kind of an online sensation, I noticed, with reviewers posting how-to videos and hundreds of people joining in on the for $74, the system includes the portable carbonator, a reusable bottle, and a set of refillable CO₂ capsules that each make up to four bottles of sparkling water. It's compact enough to fit in your front-seat cup holder; is free of PFAS, BPA and microplastics; and is backed by a circular exchange model. Just drop used capsules in the mail using the prepaid return box, and Aerflo refills and recirculates them from its New Jersey facility. The company claims it's ideal for those who care about sustainability, simplicity and well-made gear. And it of course eliminates the need for counter-top appliances that carbonate two weeks, I've been trying Aerflo – along with friends and family. It's easy to use: You place the small CO2 canister in the lid, fill the water bottle, tighten the lid, press the lid in the marked spot three times or so, shake the container, and then repeat the last two steps three times. When the water has carbonated enough, it lets out a noise of air escaping. Then you remove the lid and drink. The entire process takes maybe 30 my brief experience, it works fine but the water does not get as carbonated as a can of Lacroix – no matter how much I've tried carbonating and even over-carbonating. Yet it generates a pleasing amount of bubbles that does the job. The company asks you not add syrup or flavoring, but you can just pour the water into a separate glass with syrup if you want. I added a lime wedge to the Aerflo bottle, and that worked fine. Also, I was only able to get two glasses of carbonation out of any canister – even once I started pressing the lid the minimum amount of times per glass. So I'm not sure how much savings it's truly offering over just buying cans of sparkling water. But it's definitely better for the environment than throwing out can after an industry clearly growing exponentially, it's good that there are options. I expect there will be more products like this emerging as time goes on. And that makes me feel bubbly.

USA Today

40 minutes ago

• USA Today

Investors brace for oil price spike, rush to havens after US bombs Iran nuclear sites

The U.S. attack on Iranian nuclear sites is expected to cause market reactions, potentially increasing oil prices and strengthening the U.S. dollar. Increased oil prices could lead to higher inflation and reduced consumer confidence, potentially impacting interest rate cuts. Market uncertainty remains high due to limited information regarding the extent of damage and future developments in the conflict. NEW YORK - A U.S. attack on Iranian nuclear sites on Saturday could lead to a knee-jerk reaction in global markets when they reopen, sending oil prices higher and triggering a rush to safety, investors said, as they assessed how the latest escalation of tensions would ripple through the global economy. The attack, which was announced by President Donald Trump on social media site Truth Social, deepens U.S. involvement in the Middle East conflict. That was the question going into the weekend, when investors were mulling a host of different market scenarios. In the immediate aftermath of the announcement, they expected the U.S. involvement was likely to cause a selloff in equities and a possible bid for the dollar and other safe-haven assets when trading begins, but also said much uncertainty about the course of the conflict remained. While Trump called the attack "successful", few details were known. He was expected to address the nation later on Saturday. "I think the markets are going to be initially alarmed, and I think oil will open higher," said Mark Spindel, chief investment officer at Potomac River Capital. "We don't have any damage assessment and that will take some time. Even though he has described this as 'done', we're engaged. What comes next?" Spindel said. "I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It's going to raise uncertainty and volatility, particularly in oil," he added. Spindel, however, said there was time to digest the news before markets open and said he was making arrangements to talk to other market participants. How will oil prices and inflation be affected? A key concern for markets would center around the potential impact of the developments in the Middle East on oil prices and thus on inflation. A rise in inflation could dampen consumer confidence and lessen the chance of near-term interest rate cuts. "This adds a complicated new layer of risk that we'll have to consider and pay attention to," said Jack Ablin, chief investment officer of Cresset Capital. "This is definitely going to have an impact on energy prices and potentially on inflation as well." While global benchmark Brent crude futures have risen as much as 18% since June 10, hitting a near five-month high of $79.04 on Thursday, the S&P 500 has been little changed, following an initial drop when Israel launched its attacks on Iran on June 13. Before the U.S. attack on Saturday, analysts at Oxford Economics modeled three scenarios, including a de-escalation of the conflict, a complete shutdown in Iranian oil production and a closure of the Strait of Hormuz, "each with increasingly large impacts on global oil prices." In the most severe case, global oil prices jump to around $130 per barrel, driving U.S. inflation near 6% by the end of this year, Oxford said in the note. "Although the price shock inevitably dampens consumer spending because of the hit to real incomes, the scale of the rise in inflation and concerns about the potential for second-round inflation effects likely ruin any chance of rate cuts in the U.S. this year," Oxford said in the note, which was published before the U.S. strikes. In comments after the announcement on Saturday, Jamie Cox, managing partner at Harris Financial Group, agreed oil prices would likely spike on the initial news. But Cox said he expected prices to likely level in a few days as the attacks could lead Iran to seek a peace deal with Israel and the United States. "With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal," Cox said. Economists warn that a dramatic rise in oil prices could damage a global economy already strained by Trump's tariffs. Still, any pullback in equities might be fleeting, history suggests. During past prominent instances of Middle East tensions coming to a boil, including the 2003 Iraq invasion and the 2019 attacks on Saudi oil facilities, stocks initially languished but soon recovered to trade higher in the months ahead. On average, the S&P 500 slipped 0.3% in the three weeks following the start of conflict, but was 2.3% higher on average two months following the conflict, according to data from Wedbush Securities and CapIQ Pro. What will this mean for the US dollar? An escalation in the conflict could have mixed implications for the U.S. dollar, which has tumbled this year amid worries over diminished U.S. exceptionalism. In the event of U.S. direct engagement in the Iran-Israel war, the dollar could initially benefit from a safety bid, analysts said. "Do we see a flight to safety? That would signal yields going lower and the dollar getting stronger," said Steve Sosnick, chief market strategist at IBKR in Greenwich, Connecticut. "It's hard to imagine stocks not reacting negatively and the question is how much. It will depend on Iranian reaction and whether oil prices spike."

Yahoo

an hour ago

• Yahoo

The Return Trends At B.O.S. Better Online Solutions (NASDAQ:BOSC) Look Promising

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Speaking of which, we noticed some great changes in B.O.S. Better Online Solutions' (NASDAQ:BOSC) returns on capital, so let's have a look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for B.O.S. Better Online Solutions, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.14 = US$3.5m ÷ (US$38m - US$13m) (Based on the trailing twelve months to March 2025). So, B.O.S. Better Online Solutions has an ROCE of 14%. By itself that's a normal return on capital and it's in line with the industry's average returns of 14%. See our latest analysis for B.O.S. Better Online Solutions Historical performance is a great place to start when researching a stock so above you can see the gauge for B.O.S. Better Online Solutions' ROCE against it's prior returns. If you're interested in investigating B.O.S. Better Online Solutions' past further, check out this free graph covering B.O.S. Better Online Solutions' past earnings, revenue and cash flow. We like the trends that we're seeing from B.O.S. Better Online Solutions. The data shows that returns on capital have increased substantially over the last five years to 14%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 66%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. To sum it up, B.O.S. Better Online Solutions has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with a respectable 59% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. Therefore, we think it would be worth your time to check if these trends are going to continue. If you want to continue researching B.O.S. Better Online Solutions, you might be interested to know about the 2 warning signs that our analysis has discovered. While B.O.S. Better Online Solutions isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data