Americans are wasting $25.34 a month on unused subscriptions

Households are wasting $25.34 a month on unused subscription services as a third consider axing their plans, new figures show.

The average US home has 4.4 paid-for subscriptions worth $52.97 a month, according to a survey of 1, 106 people by credit-building firm Self-Financial. 

As red-hot inflation eats into family budgets, experts are now calling on households to take stock of their monthly outgoings to save money.

The data found that Disney+ was the most unused video streaming subscription - with 29.3 percent of people who paid for it claiming they had not used it in the last 30 days. Disney+ memberships costs begin at $7.99. 

It was followed by Amazon Prime Video and Netflix, which each saw 22.3 and 22.2 percent of users respectively say they had not viewed them in the last month. 

The average US home has 4.4 paid-for subscriptions worth $52.97 a month, according to s survey of 1, 106 people by credit-building firm Self-Financial

Meanwhile the top five least used subscriptions overall included: Amazon Prime, Walmart+, Dollar Shave Club, Chewy and Instacart Express.

In all, over 30 percent of subscriptions are going unused each month - the equivalent of 1.4 plans, or $25.34 a month. 

Subscription services boomed in popularity during the pandemic when households were locked down - meaning they had more time to stream series and needed goods delivering to their door. 

It led to what experts called the 'subscription economy,' with restaurant owners and grocery services offering monthly plans to have products delivered to customer's homes.

And the trend is continuing to grow. UBS Wealth Management estimates the digital subscription economy is worth $650 billion and is set to reach a market size of $1.5 trillion by 2025.

But experts say the figures are likely to be dampened by high inflation which is putting unprecedented pressure on household budgets.

Statistics from the US Bureau of Labor Statistics show the rate of annual inflation is now 4.9 percent - down from its peak of 9.1 percent in June 2022.

While it marked the first time the US has seen a rise of less than five percent in less than two years, it still remains far above the Fed's target rate of two percent.

According to Self Financial's survey, 36 percent of households were planning to cancel their subscription.

What's more, many are considering axing their Netflix accounts specifically amidst its crackdown on account sharing.

According to Netflix's rules, people who do not live in the same household cannot stream from the same account.

While this was always a rule, the streaming giant is bringing in a new device verification feature which makes viewers prove where they are viewing from.

Experts say the figures are likely to be dampened by high inflation which is putting unprecedented pressure on household budgets - which is now at 4.9 percent 

It will then charge for 'sub-accounts' - though the cost varies between countries.

The scheme has been rolled out in Chile where it charges sub-account holders $2.99 a month.

But in Canada the fee is $7.99 per member - the equivalent of $5.95 in US dollars.

The crackdown has yet to be implemented in the US after roll-out in Spain and Canada prompted a drop in its subscriptions.

As a result Netflix delayed bringing in the new rules to the US from the first quarter of the year to the second.

It means account sharing is expected to be banned in the next three months - though no official date has been given.

Some 36 percent of respondents said they were planning to cancel their Netflix subscription due to the clampdown.

Lauren Bringle, a financial counselor at Self Financial, said: 'With inflation still high and popular subscription services, like Netflix, cracking down on password sharing, it’s more important than ever to monitor the paid subscriptions you may have in place. 

'Review your paid subscriptions each month to decide which ones you can't live without, which ones you can get rid of, and which subscriptions you may swap and change regularly depending on your needs. 

'$10.99 a month might not seem like a lot, but over a year that's over $130, which can quickly double or triple when paying for multiple subscriptions.'