Inflation accentuates the app subscription crisis with 46 million cancellations in one year

MADRID, 26 Sep. (EUROPA PRESS) -

Cancellations of subscriptions to applications have exceeded 46 million in the last year, according to a report by the investment firm GP Bullhound, which considers inflation one of the main causes of this drop.

According to the analysis, the possibility of cutting costs by canceling subscriptions has been gaining weight since October last year. If on that date only 2% of users who canceled a subscription argued that the cost was the main factor for leaving the application, in March of this year the percentage had risen to 22%.

Additionally, Gen Z and Millennials are the two age groups that are most likely to cancel their subscriptions. GP Bullhound anticipates that subscription prices will continue to rise or that new services will appear within the platforms for which it will be charged.

Despite inflation, the study has highlighted that applications that are not video games have generated higher revenues in June than video games, after growing twice as fast since 2014.

Thus, if in 2016 there was only one non-video game application that generated more than 50 million dollars in revenue (or 50 million euros in exchange), in the second quarter there were 12, including streaming services. Hulu, Netflix, HBO, Disney, Spotify and Youtube TV; the sports application Strava, the social network Discord or the dating apps Bumble and Tinder.

In fact, the investment firm is positive about the future of the subscription market, thanks also to the verticals that are growing, beyond the streaming platforms, although it is not so optimistic with the dominant applications in the market. Currently, such as Netflix, which considers that they may continue to fall in users.

Among these 'promising' verticals are those related to family and women, where fertility applications stand out, for example.