Subscription spending is on the rise as more consumers are utilizing entertainment and retail services, a new analysis shows.

Bank of America Institute economists analyzed aggregate credit and debit card spending data from 70 million consumer and small-business accounts to find that subscription spending rose 7.7% year over year in July, outpacing overall credit card growth by more than a percentage point and a half for the past two years.

Entertainment and retail subscriptions were the highest cut of that increase, accounting for roughly 43% of all subscription spending.

And Gen Z showed the fastest subscription spending growth, rising nearly 14% year over year. Gen X is the biggest spender overall, followed by older Millennials.

“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,” Joe Wadford, an economist at Bank of America Institute, told USA TODAY.

What Types of Services Are People Subscribing To?

The largest portion of growth is in entertainment streaming services, such as music, TV, movie and video game streaming as well as large retailer subscriptions, the Bank of America Institute analysis showed. Entertainment and retail subscriptions made up around 43% of subscription spending in 2026, up slightly from 41% in the prior two years.

Reading and information (including AI) services also grew in spending, up 7%, while food, fitness and fashion categories accounted for the rest of the growth. Food, fitness and fashion made up 26% of the streaming spending.

Some services for the home, like home security, lawn, pool services and pest control, dropped in 2026 to 24%.

Different Generations Are Spending Differently

Sixty percent of Gen Z’s subscription spending is on entertainment and the retail category, according to the analysis, while half of the subscription budgets for Gen X and Baby Boomers is spent on home services, food, fitness and fashion.

It makes sense that people are willing to pay for services that center around convenience to free up time to spend with family, said Wadford.

Additionally, though many streaming services have raised their rates, spending money on a streaming service is often cheaper for entertainment than a night out, Wadford said.

“I think some of it is a function of trading down,” he said. “But it’s also a balancing of convenience and connection” to maximize time while stretching budgets.

Millennials and Gen Z spent 30% of their subscription money on food, fitness and fashion, while Gen X spent about 25% on those areas. Baby Boomers steered about 20% of their subscription budget to those categories.

Not Everyone Is Streaming

However, not everyone is streaming or spending more on subscription services, as previously reported by USA TODAY.

In April, 40% of Americans polled by consulting firm Deloitte said they had cut back in the prior three months on entertainment subscriptions because of financial concerns. About half of those surveyed said they pay too much for the streaming services and nearly 75% were frustrated that prices continue to rise.

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.

This article originally appeared on USA TODAY: Subscription, streaming spending is rising despite cost worries

Reporting by Betty Lin-Fisher, USA TODAY / USA TODAY

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