Subscription spending rose 7.7% year over year in July, according to an analysis of aggregate credit and debit card data from 70 million consumer and small-business accounts by the Bank of America Institute. Despite widespread cost concerns among consumers, spending on entertainment streaming, retail, and digital services continued to outpace overall credit card growth by more than a percentage point and a half.
Drivers of Subscription Growth
Entertainment and retail subscriptions formed the largest portion of this financial expansion, making up roughly 43% of all subscription spending in 2026, according to the Bank of America Institute data. This figure marks an increase from 41% over the prior two years. Joe Wadford, an economist at the Bank of America Institute, told USA TODAY that consumers are prioritizing convenience and connection even when managing tight budgets.
“Despite the fact that consumers are quite cost-conscious, they’re still finding room in their budget for convenience, especially when it comes to subscriptions,” Wadford said. He noted that paying for streaming services often functions as a lower-cost alternative to a night out, allowing households to trade down on traditional entertainment expenses while maintaining leisure access.
Reading and information services, including artificial intelligence subscriptions, also grew by 7% year over year. Meanwhile, food, fitness, and fashion categories accounted for 26% of subscription spending, and home services such as security, lawn care, pool maintenance, and pest control dropped to 24% of the total in 2026.
Generational Spending Breakdown
Spending habits vary notably across age groups. Gen Z demonstrated the fastest subscription spending growth, with outlays rising nearly 14% year over year, according to the Bank of America Institute. Sixty percent of Gen Z subscription spending is concentrated in entertainment and retail categories.
Gen X remains the biggest spender overall on subscriptions, followed closely by older Millennials. For Gen X and Baby Boomers, roughly half of their subscription budgets are allocated toward home services, food, fitness, and fashion. Millennials and Gen Z direct 30% of their subscription money toward food, fitness, and fashion, compared to about 25% for Gen X and 20% for Baby Boomers.
Contrasting Financial Pressures
While the Bank of America Institute data highlights ongoing growth in digital outlays, other market data points to widespread consumer fatigue regarding rising digital costs. In April, a poll by consulting firm Deloitte revealed that 40% of Americans had cut back on entertainment subscriptions during the preceding three months due to financial concerns.
That same Deloitte survey indicated that about half of surveyed consumers believe they pay too much for streaming services, and nearly 75% reported frustration over continuing price increases across media platforms.