UK music subscriptions are down as households seek savings

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LONDON, June 16 (Reuters) – Britons canceled more than a million music subscriptions in the first quarter as the worsening cost of living crisis forced them to cut corners, industry data showed on Thursday. .

British household pessimism has reached unprecedented levels as wages struggle to keep pace with inflation which hit a 40-year high of 9% in April and is heading into double digits.

This forces many people to cut back on household budgets.

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Market researcher Kantar said 37% of UK consumers cited a desire to save money as the reason they canceled music subscriptions in a market dominated in recent years by platforms such as Spotify (SPOT. N), Apple (AAPL.O) and Amazon (AMZN.O).

“Rising music subscription cancellation rates are evidence that UK households are starting to prioritize spending their disposable income,” Kantar said.

He noted that in Britain subscriptions are falling fastest among younger consumers, with the percentage of under 35s with access to a music subscription falling from 57.0% to 53.5% year on year. the other.

Kantar said the penetration of the total number of individuals with access to at least one music subscription was 39.5% of UK adults in the first quarter of 2022, up from 39.7% in the previous quarter.

This compares with an unchanged rate of 48.8% in the United States and 36.6% in Germany, compared to 35.9%.

In April, Kantar reported that the British were canceling TV and cinema subscription services.

To cut costs, Britons are also cutting store and product prices, shifting from traditional supermarkets to discounters and from branded to low-priced private label products. Read more

They are also reducing their fuel purchases by reducing the number of car trips they take and voiding appliance repair warranties. Read more

Poundland owner Pepco (PCOP.WA) said last week that Britons were even limiting their spending on essentials. Read more

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Reporting by James Davey; Editing by Emelia Sithole-Matarise

Our standards: The Thomson Reuters Trust Principles.

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