Time for a subscription detox? Kiwis spending almost $400 a year on TV platforms

How much are you spending on subscriptions each year? Photo / 123RF

New Zealanders are spending almost $400 a year on TV service subscriptions, according to new data from Westpac.

The bank says its customers paying for TV subscriptions are spending an average of $33 a month, an increase of 20% compared with last year.

One in 10 Westpac customers who pay for a TV subscription are signed up to three or more services, costing them upwards of $70 a month.

Mark Street, Westpac NZ chief digital officer, urged people to keep a closer eye on their spending to prevent money “leaks”.

“With lighter evenings on the way, many people will be spending more time outdoors over the coming months,” he said.

“That makes it a good time to review your winter entertainment subscriptions and think about whether you’re still using them.

“If you’ve got multiple subscriptions and haven’t tuned into a particular service over the past month or two, maybe it’s time to turn it off for now.”

Recent data from Roy Morgan shows more than 3 million New Zealanders over the age of 14 have watched subscription television in an average four weeks, an increase of 7.4% over the past four years.

Claire Matthews, associate professor and head of school for accountancy, economics and finance at Massey University, said it could feel like everyone wanted your money on a recurring basis at the moment.

“How we access media in particular, there is that move to subscriptions, in terms of TV, newspapers and everything,” she said.

“It does seem like any time you want to do something that there is this subscription. You get a free offer to try something but at the same time … there’s that real risk that at the end of the month you’ll forget to unsubscribe.”

Matthews said one of the dangers with subscriptions was the “hidden expense”.

“The fact that [subscriptions] do increase over time and that you have to think about whether you’re actually using it.

“You might sign up legitimately expecting to use it regularly, and for a period of time you do, but then suddenly for whatever reason you stop using it, and then you forget that you’ve still got it, and you continue to pay.”

Matthews said people had started to look more closely at what they were spending their money on, particularly in the past 12 months amid the cost of living crisis.

“It really is being aware of [subscriptions] … looking at your bank accounts and your credit cards in particular and just being aware of what you are spending your money on.”

Cameron Smith is an Auckland-based business reporter. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.