The data: Consumer spending on non-utility subscriptions rose 7.7% YoY in July, outpacing the rate of overall debit and credit card growth, per Bank of America (BoA).

• Retail and entertainment subscriptions—including movies, TV, music, and gaming—accounted for 43% of all subscription spending. Food, fitness, and fashion reached a 26% share, followed by home services at 24%.
• Reading and information—which encompasses AI apps—made up only 7% of the market but is the fastest-growing subscription segment. The category grew 61% YoY among Gen Zers.

Gen Zers are the biggest buyers, with subscriptions rising 14% YoY in July. Younger and older millennials’ subscriptions increased 10% and 8%, respectively, while Gen Xers’ grew 3% and baby boomers' 5%.

What it means: Households are spending on services that deliver convenience, content, value, and utility, even if budgets are tight.

The rapid growth of information- and AI-focused offerings shows new recurring revenue opportunities for providers beyond traditional media and entertainment and a valuable segment to explore as AI providers expand their advertising businesses.

However, spending growth doesn’t equate to loyalty, especially among younger cohorts. Eight in 10 US Gen Z video-streaming users have signed up for a service to watch a particular piece of content then canceled or paused, per CivicScience. About 37% have canceled specifically because of subscription fatigue.

Implications for subscription providers: Although Gen Zers’ subscription spending is rising faster than any other generation, they’re also willing to treat expenses as disposable if clear value isn’t expressed or felt. Streaming providers should expect churn and consider subscription models that include easy pausing or usage-based pricing.

Don’t deprioritize retention among older cohorts or assume AI subscription interest will guarantee longer-term loyalty, considering the technology’s novel and experimental nature.

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