A quarter of Gen Z now pays for social media

Rhea-AI Summary

Gen Z leads subscription spending with nearly a quarter (23%) now paying for social media platforms, double the general US rate of 14%, according to Bango's Subscriptions Assemble study of 5,000 US subscribers.

The 18-25 age group averages 6.8 subscription services, spending $940 annually. They prefer bundle deals, with 2.7 subscriptions paid through third parties like cell phone plans. Music leads their subscriptions (59%), followed by streaming services (56%) and gaming (46%).

Key findings:

• 48% lose track of subscription spending
• 55% want telcos to manage their subscriptions
• 73% would pay more on mobile bills for included subscriptions
• 32% have canceled direct subscriptions for bundle deals

Positive

• Strong Gen Z adoption of paid subscriptions indicates growing revenue potential
• High willingness to pay (73%) for bundled services through mobile bills
• Successful monetization of previously free social media platforms

Negative

• 48% of Gen Z users losing track of subscription spending could lead to higher churn
• Lower streaming service adoption among Gen Z (56%) compared to overall US subscribers (75%)
• Customer frustration with subscription management (52% want centralized control)

Paying to post: new data reveals social media has joined Gen Z’s growing list of subscriptions — now costing nearly $1,000 a year

SAN JOSE, Calif., April 15, 2025 (GLOBE NEWSWIRE) -- In a surprising twist to the once-free world of social media, nearly a quarter (23%) of Gen Z Americans (aged 18-25) now pay for a subscription to social media platforms such as Snapchat and X. That’s nearly double the rate (14%) of US subscribers at large, according to new data from the Subscriptions Assemble study by Bango (AIM: BGO).

This emerging trend among Gen Z is just the beginning. The report — based on a landmark study of 5,000 US subscribers — finds that younger Americans are at the forefront of a new phase of the subscription economy where bundling is the rule.

Meet the most subscribed generation in America

Gen Z is the most heavily subscribed generation, paying for nearly seven (6.8) services on average. And they’re not shy about the cost: their total annual spend tops out at $940 per year.

They’re also most likely to subscribe ‘indirectly’ via bundle deals through third parties (such as their cell phone plan), with almost three of their subscriptions (2.7) now paid in this way.

Why? More than any other group, Gen Z prioritizes speed. 25% say it’s faster to subscribe indirectly through a bundle. Over a third (36%) also say they get a better price.

In fact, they’re the most likely to cancel or pause a direct subscription in favor of a better deal in a bundle, with 32% of Gen Z making that move vs 20% of the wider population — signaling a shift in not just what they buy, but how they buy it.

The Gen Z playlist: from Spotify to Xbox GamePass

Music subscriptions top the subs list for Gen Z, with 59% saying they subscribe to at least one — compared to 43% of older American subscribers.

They are also the only age group for which streaming services such as Netflix or Disney+ don’t come out on top, with 56% of Gen Z paying for at least one of those, compared with 75% of US subscribers as a whole.

Gaming subscriptions are also much more popular with this group, with almost half (46%) paying for gaming services such as Xbox GamePass or PS Plus compared with only 22% of US subscribers overall.

Bundles wanted

Despite being cost-conscious digital natives, Gen Z subscribers are also the most likely to lose track of what they’re paying for. Nearly half (48%) admit they lose track of their total subscription spend. And over half (52%) are frustrated they can’t manage all their subscriptions in one place.

That’s fuelling demand for smarter subscription bundling hubs such as ‘Verizon +play’. Over half of Gen Z (55%) would like their telco to manage all their subscriptions and a massive 73% say they’d be willing to pay more on their mobile or internet bill if subscriptions were included.

1 in 5 Gen Z would prefer this sort of all-in-one subscription service to be offered by social media platforms like Meta, TikTok or X.

Paul Larbey, CEO at Bango said “Gen Z is known for being cost-conscious, so they are discovering real value and convenience in bundled services. That means buying services as bundles is likely to become a lasting habit with this generation. Predictably these consumers look for subscription ‘staples’ — like music and streaming — through bundles to keep costs manageable.

But what’s really surprising is that despite their cautious approach to spending, young people are willing to pay extra for premium access to social media. Instead of just consuming content, they’re enhancing their online presence and social connections. Platforms like Snapchat+ are now starting to be offered by telcos, showing how the bundle helps social media subscriptions to meet Gen Z’s demand for impact and convenience.”

Read the full Gen Z breakdown 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
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bango@samsonpr.com
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FAQ

How much does Gen Z spend on subscriptions annually in 2025?

Gen Z spends an average of $940 per year on subscriptions, maintaining approximately 6.8 different services.

What percentage of Gen Z pays for social media subscriptions?

23% of Gen Z Americans (aged 18-25) pay for social media platform subscriptions, compared to 14% of the general US population.

What are the most popular subscription categories among Gen Z?

Music leads at 59%, followed by streaming services at 56%, and gaming subscriptions at 46%.

How many Gen Z subscribers would prefer telco-managed subscriptions?

55% of Gen Z would like their telecom provider to manage all their subscriptions, with 73% willing to pay more on their mobile bill for included subscriptions.