Consumer spending on subscriptions continues to grow faster than overall spending, with entertainment, retail memberships and information services driving the latest wave of growth in the subscription economy, according to new research from Bank of America.
The bank’s latest analysis found that non-utility subscription spending increased by 7.7% year on year in July 2026, exceeding the growth rate of overall card spending. This trend has remained ongoing for two years, suggesting consumers remain willing to commit to recurring payments despite ongoing economic uncertainty.
Entertainment subscriptions lead the way
Entertainment subscriptions, including music, television, film and video game streaming services, alongside large retailer membership programmes, accounted for much of the increase and now represent around 43% of all subscription spending, according to the research. However, reading and information subscriptions are emerging as one of the fastest-growing categories.
This segment, which includes AI-related services, recorded particularly strong growth among younger consumers. Spending in this category rose 61% year on year among Gen Z consumers and 51% among younger millennials.
Generational differences
The data also highlights clear distinctions between generations. Gen Z (born between 1997 and 2012) recorded the fastest growth in subscription spending overall, at nearly 14% year-on-year in July 2026, but Gen X (born between 1965 and 1980) remains the biggest subscription spender, with older millennials (1981 to 1996) following closely behind.
Bank of America said the findings indicate consumers are increasingly embracing subscription-based services across a range of categories, from entertainment and retail memberships to AI-powered information products. Although subscription spending still represents a relatively small proportion of total household expenditure, the report suggests that consumers are continuing to prioritise services that provide ongoing convenience, content or perceived value, even as household budgets remain under pressure.
At the same time, the rapid growth of information and AI-focused subscriptions points to new opportunities for providers looking to expand recurring revenue streams beyond traditional media and entertainment offerings.
For businesses operating in the subscription economy, the research offers further evidence that recurring revenue models remain resilient, particularly when aligned with consumer demand for digital services, memberships and personalised experiences.
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