Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’ve been looking at the latest research affecting employees – including how CEOs rank their workforce, new calls for the 4 day working week, UK skills gap affecting career progression, and more.
We’re also discussing new research into Brits spending commitments to streaming platforms, the “doom spending” phenomena, and more.
Key news
- Tech giants like Amazon and Google are bailing out struggling artificial intelligence startups via deals that The Wall Street Journal calls “acquisitions in everything but name.” AI startups have led a funding boom over the past year, but the costs to develop the technology mean many face challenges to stay afloat. Instead of acquiring these startups outright, which would draw regulatory scrutiny, large tech companies are now licensing their technologies.
- A new trend dubbed “doom spending” is gaining traction among younger generations, particularly on social media platforms like TikTok. This phenomenon involves splurging on short-term pleasures rather than saving, often in response to economic anxieties and bleak outlooks on future financial stability. A recent Credit Karma study revealed that 43% of millennials and 35% of Gen Z engage in this behaviour. Economic experts warn that while it may provide temporary relief, “doom spending” can lead to a cycle of financial instability, primarily when facilitated by buy-now-pay-later schemes.
- An advert from Virgin Atlantic claiming the first transatlantic flight powered entirely by “sustainable” biofuel has been banned by the Advertising Standards Authority (ASA) for making misleading environmental claims. The flight from London to New York used 100% sustainable aviation fuel (SAF), however the ASA argued that while SAF reduces carbon emissions, it is not zero carbon and involves environmental trade-offs in production. Virgin Atlantic contended that the ad would not be misinterpreted, citing a survey indicating that only 1.5% of long-haul flight consumers are influenced by sustainability. Nevertheless, the ASA ruled that many listeners could be misled by the “100% sustainable” claim.
CXM news stories
Here’s the full news stories that CXM have reported on in the past week. Learn all about the latest research affecting employees – including how CEOs rank their workforce, new calls for the 4 day working week, UK skills gap affecting career progression, and more.
Brits now spend almost £700 on subscriptions every year
Despite high cost of living concerns, UK subscribers are now spending £696 on subscription apps and services every year — on top of standard bills such as TV, phone, and internet. 1 in 8 are paying more than £100 a month for their subscriptions, amounting to £1,200 per year. That’s according to a newly released European Subscription Wars report from Bango.
Recent price hikes across the industry, including from the likes of Netflix and Disney+, are impacting subscribers — with almost half (45%) having recently cancelled a subscription due to price increases. Despite this, appetite for subscriptions remains high, with 60% of Brits saying they’d sign up to more subscriptions if they could afford it. This is despite already having 3+ subscriptions on average — more than Italy, France or Spain.
The Bango report also highlights the impact of ad-funded content in the UK. Earlier this year, Amazon Prime Video asked Brits to pay an extra £2.99 a month to remain ad-free, a move followed by Netflix earlier this month. According to the Bango data, 31% of UK subscribers have chosen to save money by downgrading to an ad-supported tier. In contrast, 23% have upgraded their subscription to avoid the ads.
But streaming and subscription providers should proceed with caution. Over a quarter (28%) of UK subscribers have ditched a subscription service entirely because ads were introduced. ‘Premium ad tiers’ are not welcome in the UK, with three-quarters (75%) saying that paid-for subscriptions should “never” display ads.