Average of 3.4 Subscription Services Used Per Person
71% of Koreans Say "Integrated Subscription Management Needed"
Domestic consumers in South Korea are spending nearly 500,000 KRW annually on subscription services such as online video streaming services (OTT) and music streaming.
On the 2nd, Bango, a subscription bundling and payment specialist company, released the 'Subscription War 2024' report based on a survey of subscription service usage and consumer perceptions among East Asian consumers. According to the survey, Korean consumers use an average of 3.4 subscription services and spend about $30 (approximately 40,000 KRW) per month.
Among domestic consumers, subscription video on demand (SVOD), including OTT, was the most used service (84%). This was followed by music streaming sites (49%) and shopping platforms (46%). Among the three surveyed countries, Taiwan spent the most, using 4.2 services and spending $35 (about 47,000 KRW) monthly. Japan was found to use 2.8 services and spend $22 (about 30,000 KRW) per month.
Subscription Service Usage Figures by Market [Photo by Bango, a subscription bundling and payment specialist]
Among them, more than one-third (34%) of platform subscribers in the East Asian region subscribe through 'third-party bundled products and services.' This rate is much higher than in the United States, Europe, and Latin America. This trend indicates the growing popularity of indirect channels, where consumers receive better benefits, enjoy greater flexibility, and manage subscriptions more conveniently and affordably. When asked about their preferred super bundling (bundled subscription products) providers, East Asian consumers showed a preference for services offered through 'telecom companies.' 66% of subscribers want their mobile carriers to offer super bundling packages, a figure much higher than in the U.S. (50%) and Europe (46%).
As the subscription economy rapidly grows, there is also an analysis that consumers' 'subscription fatigue' is increasing. Sixty-four percent of consumers who participated in the survey responded that they feel the need for a service that can manage all subscriptions and accounts. [Photo by BANGO]
Earlier surveys conducted in February targeting the U.S. and Europe showed that American consumers use an average of 4.5 services and spend $77 (about 103,000 KRW) monthly. Europe uses 3.2 services and spends 58 euros (about 85,000 KRW). While the subscription economy is rapidly growing, there is also an analysis that consumers' 'subscription fatigue' is increasing. 64% of survey participants said they feel the need for a service that can manage all subscriptions and accounts.
In particular, the response rate among domestic consumers (71%) was higher than the average. 62% of all respondents said that if such a service were provided, it would "help manage household expenses." Andy Suzuki, Senior Vice President of Bango Asia-Pacific, said, "The subscription economy in the East Asian region continues to evolve and diversify," adding, "As the burden on subscribers is expected to increase further, the need to simplify subscription management is rapidly growing."
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