Appetite Grows for Usage-Based Billing

A new report shows that 43 percent of U.S. consumers say that monthly streaming billing leaves them paying for unused time, and one in six want subscriptions based on actual usage, such as time spent in an app.

Bango surveyed 2,500 U.S. consumers about how they want subscription pricing to change.

A quarter of those surveyed think streaming services should introduce rewards for binge-watching “streaks,” such as unlocking discounts after streaming a set number of hours or completing a season.

As mentioned previously, one in six Americans want subscriptions billed based on actual usage, such as time spent in an app. One in ten want to pay for video streaming per hour watched rather than committing to a monthly bill, while 7 percent would even consider paying per minute viewed.

Around one in five consumers say they would share additional data such as viewing or watch history if it unlocked better deals.

The report also finds interest in new ways to pay across services. 21 percent of those surveyed say they want cross-platform credits that can be used across multiple streaming services, while 20 percent want credits that apply across all of their subscriptions, not just streaming.

More than a third of Americans surveyed desire a single sign-in and a single monthly bill that covers all of their streaming services. And beyond entertainment, 36 percent want a single sign-in and bill across all subscription types, from retail and food to fitness and apps.

“Consumers want subscriptions to fit real life,” said Giles Tongue, VP of marketing at Bango. “People dip in and out of services, switch up what they watch and expect pricing and perks to match that reality rather than a rigid monthly fee.

“They want one place to manage what they pay for, and they’re open to the next generation of subscription models that feel more flexible and rewarding, from binge-watch benefits and cross-platform credits to billing that flexes around usage.”