You’ve heard of Pikes Peak or maybe Inspiration Peak.
In the media world, we’ve also talked about Peak Podcast, the condition where there are so many podcasts that people experience overload, decision stress. or just a belief about their inability to discover great shows because of their excess.
Make room for Peak Subscription, a condition we’ve talked about here in JacoBLOG for some time now. Our Techsurvey 2022, conducted way back in January, predicted we’d be here before too long.
After all, our mega-sample of more than 40,000 core radio listeners told us that nearly three-fourths subscribe to two or more video streaming subscriptions; six in ten are paying for at least one audio streaming service.
And even 10 months ago, a growing number of consumers was expressing concern about the rising numbers of subscriptions they were paying for. And that was before our current round of inflation had kicked in.
The findings are backed up by a new story in The Drum by reporter John Glenday.
Titled “US subscription fatigue is real, with consumers managing an average of 5 accounts,” Glenday reports on a new study from Bango, a mobile app payments company. In the study, more than seven in ten (72%) now say there are “too many” subscription services, exceeding what we saw in TS 2022.
Part of the issue isn’t just the cost. The Bango survey of 2,500 Americans discovered nearly eight in ten (78%) long for a single app with the capability of managing all their subscriptions.
As Bango notes, the rising costs of subscriptions – especially in the face of costs going up on everything – have pushed Disney+ and now Netflix to launch lower
priced tiers – with commercials.
That strategy, however, may be flawed. Bango says it may be more about simplicity – creating a “super bundle” of coveted services. Believe it or not, 63% say they’d pay even more for the convenience of not having to muddle through the administrative hassle of managing so many services.
Anil Malhotra, Bango’s co-founder underscores the simplicity angle:
“Subscription users don’t want less choice, they want less admin. They’re tired of managing multiple services and multiple accounts, and paying multiple bills. What’s needed is not fewer subscription services, it’s a way to bundle all those subscriptions together. We need to focus on creating all-in-one solutions that give users the best prices, provide flexibility over bills and put subscribers first.”
What does this tell radio managers and strategists? First, the window of opportunity may be closing. While no U.S. stations that I know of have rolled out a subscription program, unlike Bauer Media in Europe, the chance to do so successfully is fading.
Instead, it appears to be about making things easier for consumers. For public and Christian stations soliciting donations and membership, perhaps it’s a matter of bundling benefits. So when someone contributes to a certain threshold, they not only become a member but can save 10% at the local grocery store chain or perhaps a digital subscription to the local newspaper.
For commercial stations, it might be as easy as reviewing contests to ensure their methodologies are as simple as possible. It’s always been smart to craft giveaways with as few “hoops” as possible. I continue to hear unnecessarily complicated contests, featuring too many rules and requiring more attention from listeners than may be realistic.
Consumers are spent – literally and figuratively. They’re tired of being forced to pay for virtually everything in their lives. As some of you know, auto companies are
looking for more ways to monetize their cars and trucks – after the sale. That means paying a monthly fee for basic conveniences like heated seats. That’s what BMW has launched in some countries, but not yet in the States. For $18/month, you can enjoy the apparent luxury of having your butt warmed while you drive. (When will they start charging every time you open the sunroof?)
They call them microtransactions. But in reality, they are macro headaches for consumers. After years of paying for content from multiple creators, they need a break. And yet, more and more conveniences are becoming premium products.
Did I happen to mention broadcast radio is free? That’s still a main reason why nearly six in ten (59%) core radio listeners continue to tune in.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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“single app with the capability of managing all their subscriptions.”
Would the Apple News app fit that description? Instead of subscribing to dozens of newspapers & magazines, Apple aggregates it all for $10 a month.
Yes, I think so, Jeff. Perhaps you don’t get “everything,” but it is a nice compendium of coverage.
I agree, broadcast radio is free (well you “pay” by listening to advertisements but the devil is in the details). I think one thing that would help broadcast radio is to let the patent expire for “HD Radio” and let it become open source (like DTV is). I’d like to hope more stations would explore it and use it. Perhaps it becomes the minor leagues of broadcasting. And I know its been said her before but I’ll repeat it again, the non-stop 8 minute programming free breaks need to stop.
Why? Except for Translators and WDCG-HD2 actually beating WDCG-HD in Raleigh-Durham, HD is dead in the water. Clear Channel and NPR were determined that they would build on a brand on the frequency and use the others for variations (Think Z100 on HD, RCHR on Z100-HD2 and Z100 Adult CHR on HD3).
But with Country on the HD and Spanish or Urban on HD2/3 that didn’t happen.
And don’t even talk about the Ill conceived Stations in between Stations promos that Radio gave 100s of millions of dollars of promo time to that the audience didn’t get and just thought they were talking about out of town stations.
The breakthrough solution was proposed at the 2005 HD Focus Groups and over 90% of the attendees wanted it, vs what we have now. NPR and CC didn’t want it so they could use their own vision of the above.
There is only 1 way now to make HD Radio must have now and has for almost 10 years yet no one else has thought of it or would ever do it. And I am not sure that it would make the difference now as Radio AQH Ratings have cratered.
Translators (and Sports Team Rights) are the only use for HD today.
Thanks, Jerry.
“single app with the capability of managing all their subscriptions.”
You mean, like cable?
🙂
You are dead on the money, my friend. Wouldn’t it be amazing to be able to access the full menu online, pick and choose your channels (each price listed). And you can always go back and select/deselect offerings. Cable might be right back in business.
As I have pointed out on line forum discussions for the last 15 years on ala carte pricing for MVPD, you end paying the same amount for very few channels when all is said and done.
When will you start charging for reading your blog?
Nooooooo… please, no! 🙂
Haha! Thanks for the great laugh, Tito! I don’t expect Fred to take you up on that idea…but I will say his blog and your replies would be worth the price! Happy Thanksgiving!
LOL The same to you, David!
Not going to happen. I may not be long for Twitter, but the blog is the blog. 🙂
Actually you were off base with the BMW Seat tease. And I for one wish they offered it.
BMW still allows options for a set “lifetime” price. Or a monthly subscription fee.
I ordered my 2013 BMW ActiveHybrid 3 from Germany with EVERY option available EXCEPT Heated Seats and Steering Wheel. It was a $550 option and living in Florida I saw no need. On my lease it would add $15 a month for something I would use 1 or at most 2 times a year.
Had no intention of buying car after lease was up. But I fell in love with the car. Unfortunately, most are unaware of it as only 5,200 exists Worldwide (1400 in USA). 3 years later when my lease was up, guess what BMW had discontinued?
As Hybrids were out of style with cheap gas in 2016, the market price was 25% below residual. Worked deal with BMW taking the $10k haircut and purchased it.
BMW had a 2016 330e Mule with a custom BMW Leather Interior that was used as the debut for the 330e at the International Motor Show Germany and the Munich Autoshow, as well as Worldwide Press pictures. For reasons unknown to only them, they destroyed the vehicle.
However, the custom BMW Individual Interior was removed. Bottom line, it was barely ever used or driven and I ended up importing them for a steal. And it had heated seats.
So I began my quest to retrofit Heated Steering Wheel and Seats.
Not including the new seats, I am about $2200 into the retrofit that would have cost $550 when I ordered the car.
Would I have paid $550 for the seats. Or even $18 a month on the 1 day a year I would actually use them? Of course.
It also allows BMW (and other Companies) to have less sku/parts/inventory at a great savings and a revenue stream after the new car is sold. And don’t worry if the used car you found us perfect but does not have option X. They can send a signal via 4G (and now 5G) to enable it, either monthly, annually or forever.
One notes that Tesla’s much hyped self driving car (still far from self driving) are going up in price almost annually and do not transfer to new car when sold (on the newer models).
So in reality, $18 for heated seats makes a lot of sense. You can still buy flat pricing. Or monthly. Less Inventory parts. Less wiring harnesses. Less differences in manufacturing. Less issues in the secondary market and beyond if someone has to have a feature or someone doesn’t want to pay for a feature.
It’s a win-win all the way around.
Who in Earth would have 5 media subscriptions and get worried about paying them all? Who even has the time to watch them all.I sure don’t.
I have a 2010 Ford Focus that I bought used. The radio has AM and FM reception with an optional XM satellite radio that I can subscribe to for a monthly fee.I am not interested in an subscription at all for XM as I am happy with the offerings of regular radio.I am retired so I have to watch my spending.XM radio is just not necessary for my driving.
You’re a person of simpler tastes who is happily spending a lot less on this stuff than most of us. Congrats on your focus and frugality.