Illustration by The Outspoken’s Emilee Youn
Every day, billions of people reach for their devices with the excitement of doomscrolling on social media, often wasting huge chunks of time for the price of lost productivity. Subscriptions are no longer confined to entertainment. They show up everywhere, from educational apps, like Notability, to health apps, like Headspace, and in daily activities such as transportation and food delivery. Not too long ago, we used to anticipate buying CDs, new editions of novels, or fresh textbooks for school with the traditional loose-leaf and pencil in hand. As we approach 2026, all belongings feel incredibly provisional and rather temporary, until the next billing cycle.
A one-time purchase often caps a company’s revenue, but a subscription is endless. Following the principle of payment decoupling, the small subscription cost of a Netflix or Spotify Premium account psychologically seems less significant than a $300 upfront price tag. Streaming platforms raise prices and tend to split catalogs with various competitors, which encourages users to subscribe to multiple platforms. Inevitably, loyal Netflix users juggle their subscriptions with Prime Video, just to watch a weekly episode of The Summer I turned Pretty.
Currently, the typical U.S. household pays subscriptions for at least six different streaming services, compared to just three in 2016. Health and wellness apps recently implemented premium tiers that place restrictions on free trials, and note-taking apps snipe monthly fees from users without reminders. The average American spends almost $219 every month on subscriptions alone, which totals approximately $2,600 per year on services that people forget they even pay for. Globally, the subscription economy is projected to reach about $1.5 trillion by the end of 2025, doubling since 2020, which was the peak of Covid-19 when everyone was home.
While $8.99/month feels immensely trivial, an $89.99 one-time purchase sounds insane to the majority, and the companies know that. Many consumers never end up cancelling their subscriptions, causing “subscription inertia,” which is a huge contributor to the success of this profit formula. Moreover, about 42% of subscribers admitted they have forgotten about at least one recurring charge that they were paying for. The subscription model has transformed into a process more than a simple payment system that existed a decade ago. To many, the shift from ownership to perpetual rent is completely irrelevant, but soon enough, heated car seats or AI-powered home decor will all be subscription-based. While it sounds extreme, these visions are becoming a reality. BMW has already tested $18 per month heated car subscriptions, and home smart technology is in the process of developing “pay-to-unlock” features.
Subscription costs manage to quietly slip under the radar of traditional inflation measures and contribute to the erosion of disposable income. While those with higher incomes can easily accept the shift of $5 to $15, others face subscription poverty.
These recurring fees may feel convenient and accessible, but they block out digital services for many who can’t afford to pay a monthly fee for their child’s note-taking app. Subscriptions are viewed as a harmless billing cycle; meanwhile, it is one of the most unequal economic changes in our decade and destroys the lives of the lower and middle class, which includes most of us.
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