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The real reason you’re paying for so many subscriptions

LivemintLivemint · 10m
The real reason you’re paying for so many subscriptions

Many people overpay for unused subscriptions, a hidden force driving the subscription economy. Americans spend billions on forgotten subscriptions. A survey by West Monroe found Americans underestimated their monthly subscription spending, with an average guess of $96 when the actual average was $273. However, there's a growing trend of strategic subscription management, with nearly 25% of US subscribers canceling at least three services in the past two years. A study found that card replacements led to a sharp drop in subscription retention, highlighting the inertia in subscribers. Proposed solutions include prompting users to actively choose renewal periods and leveraging usage data for personalized subscription reminders. The Federal Trade Commission has proposed a rule for annual subscription reminders.

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