MEXICO CITY, June 06, 2024 (GLOBE NEWSWIRE) — The subscription economy in Latin America is experiencing explosive growth, with subscribers now juggling an average of 3.5 subscriptions per person and spending approximately $37 each month ($444 per year). This trend is particularly pronounced in Mexico and Brazil, where the average rises to 3.8 subscriptions per person. However, this rapid growth has brought with it significant challenges, particularly in the form of subscription fatigue.
A recent survey conducted by Bango, covering over 6,400 subscribers across Mexico, Brazil, Peru, Colombia, Chile, and Argentina, reveals that on average, 68% of subscribers cannot afford all the subscriptions they desire. This issue is most acute in Brazil, where the figure rises to 73%. Many subscribers are struggling to keep track of their various subscriptions, with 27% not knowing their monthly expenditure and 32% paying for services they don’t use. Subscribers are overwhelmed.
‘Super Bundling’ and subscription hubs
As subscription fatigue mounts, Latin American consumers are clamoring for better ways to manage their services. An overwhelming 79% of subscribers express a desire for a single app to manage all their subscriptions and accounts. This sentiment is strongest in Peru, where 82% of respondents share this view. Furthermore, over two-thirds (68%) believe they would spend more time using their subscription services if such an all-in-one platform were available, and more than half (58%) would subscribe to more services if they could manage everything in one place.
Services like Verizon +play and Optus SubHub have revolutionized the subscription landscape in the US and Australia by providing consumers with more choice and control. Now, Latin American subscribers are eager for similar solutions. These content hubs allow subscribers to pay for and manage multiple subscriptions through one content hub, known as Super Bundling. Super Bundling can significantly simplify management, reduce costs, and increase overall satisfaction.
Paradox resolved
The introduction of Super Bundling can resolve the paradox of subscription fatigue. By allowing subscribers to pay for and manage all their services in one place, they are likely to spend more, subscribe to more services, and use these services more frequently. The survey highlights that 56% of Latin American subscribers would be willing to pay a higher bill if it included a package of popular subscriptions, with this number rising to 62% in Mexico. Additionally, 73% of subscribers would show greater loyalty to a brand offering an all-in-one subscription service, while 55% would switch providers to access such a service. Better financial management is the standout benefit for Latin American subscribers thanks to one centralized bill. Four out of five (81%) subscribers feel they would better manage their household expenses if this service became available elsewhere.
When it comes to offering Super Bundling as a service, Latin Americans have a clear preference for telecommunications companies: 55% would like their mobile operator to offer Super Bundling packages, while 30% said this type of service should be offered by their internet providers. Outside of telcos, 1 in 4 would ask either banks (24%) or payment companies (24%) to step up and provide this service as well.
Luisa Muneratti, SVP Sales Iberia & Americas at Bango, highlights that “As the subscription economy in Latin America continues to grow, the challenges of subscription fatigue and management become more pressing. Super Bundling offers a viable solution, promising to enhance user experience, increase subscription uptake, and foster greater customer loyalty. With the potential to revolutionize how subscribers interact with their services, Super Bundling stands at the forefront of the next wave of subscription innovation.”
To find out more Latin American subscriber trends, download Bango’s full Subscription Wars: Super Bundling Awakens, Latin American report here.
About Bango
Bango enables content providers to reach more paying customers through global partnerships. Bango revolutionized the monetization of digital content and services, by opening-up online payments to mobile phone users worldwide. Today, the Digital Vending Machine® is driving the rapid growth of the subscriptions economy, powering choice and control for subscribers.
The world’s largest content providers, including Amazon, Google and Microsoft trust Bango technology to reach subscribers everywhere.
Bango, where people subscribe. For more information, visit www.bango.com
Media contact
Sandra López Aguado
Vianews México
sandra.lopez@vianews.com.br
+52 5527281068
