New research shows Aussie consumers are wasting more than $1.6k on unused subscriptions

Australian consumers are being warned they could be burning a hole in their pockets by spending more than $1,600 a year on unused subscriptions.

Compare market (CTM) research shows 50 per cent of Australians pay for subscription services they don’t use, with gym memberships and streaming services among the main sources of wasteful spending.

Those who didn’t actively use their gym memberships suffered the most, wasting an average of $93 per month or $1,116 per year.

Netflix topped the list in terms of streaming services; 57 percent of survey participants admitted that they do not use their subscriptions. Disney+, Amazon Prime, Spotify and Stan followed.

CTM surveyed more than 1,000 Australians about their spending habits.

Phoebe Dolan, 29, was spending about $150 a month on two gym memberships and streaming services before the costs started affecting her budget.

When she reviewed her expenses, she began sharing some subscriptions with her roommates, reducing her individual spending to about $25 a month. He said it wasn’t easy to realize the amount he spent.

“When you sit down and look at how much you’re spending on (subscriptions) that you don’t use, it’s actually a shame,” the Brisbane-based marketing expert told NewsWire.

“I guess it’s not noticeable until you look at what you paid on paper.

“This money is enough to finance a vacation.”

Ms Dolan said her busy daily routine meant she didn’t have the chance to browse all the streaming services to find something to watch.

“I only have time to watch one (TV show or movie) at a time… and when I get home after work or go to the gym, it’s like that time completely disappears,” she said.

“And sometimes one platform has better options than another. Two platforms get abandoned, but you still pay for all three.”

Curtin University economics lecturer Elson Goh said consumers could also be susceptible to “subscription traps”, which make it easy to sign up for a service but difficult to cancel.

He added that no particular age range or demographic is more or less affected than others.

“Even if you don’t need (the subscription), it might be a good deal right now and you subscribe later hoping it will encourage you to buy it later,” the financial planner said.

“I think the market has gotten to the point where (companies) are very good at segmenting different people into different lifestyles and life stages. There’s a subscription for everyone.”

CTM economics director David Koch said consumers should take a close look at their various household expenses to avoid being stung.

“Canceling a subscription is usually easy and may only take a few minutes, but it can save money

“In total, hundreds of people are wasted every year,” he said.

“The team at Compare the Market often find that people are paying for private health insurance cover, such as maternity cover, that they no longer need, so it’s worth reviewing your bills.

“This is an easy cost-of-living win in the midst of an uncertain economic period.”

Consumers can create a common calendar to track their subscriptions and talk to a certified financial planner if they are concerned about their spending, Mr. Goh said.

“If you sign up for something, put it on a separate calendar right away so you can track (each subscription),” he said.

“Just chatting with your partner to go through all your subscriptions is more than enough to capture at least half of what you have.”