More than half of consumers in APAC markets only want to pay for what digital content they use, according to The Worldpay Future of Digital Payments Report.
These consumers are ready to commit to long-term services when offered a range of payment options. Only 29% of consumers in Japan and 31% in India said they don't want to commit to a service long term.
The APAC region is characterised by a very high internet and mobile penetration rate where consumers want to enjoy movies, music and ebooks over digital channels.
Demand for greater choice in digital content and subscription models amongst consumers in the region is rising for consumers in Asia who prefer more flexible payment models for digital content.
"Streaming and on-demand subscription services such as Netflix, Amazon Prime and Spotify have revolutionised digital content consumption in the West. In Asia, these services are becoming more mainstream," said Stuart Thornton, VP of Business Development in APAC, Worldpay. "Digital content providers looking to capitalise on digital subscription services in the APAC region will need to offer a greater range of customisable tariffs and payment options to meet Asian consumers' expectations of flexibility in subscription payment models."
Keeping track of spending
Consumers in markets like China and India are wary of subscription models that make it difficult to keep track of spending. 56% of consumers in China and 53% in India see subscription billing services as a disadvantage.
54% of consumers in China and 48% in India are most likely to cancel their paid subscriptions after the first six months.
43% of consumers in the Japanese market are far less concerned about keeping track of spending and 23% of them are much less likely to cancel a subscription service early on.
40% of Chinese consumers and 31 % of Indian consumers said that sharing personal information for a long period of time holds them back from signing up for a subscription service. Only 22% of Japanese consumers cite data privacy as a concern.
"While consumers in emerging markets like China and India don't fear commitment as much as their Western counterparts, they are also the most likely to be concerned about data privacy and tracking spending, and to cancel their subscriptions as soon as the trial period has ended. Consumers in Japan, on the other hand, must be convinced of a service's value before they will subscribe," added Thornton. "To address the varied needs and perceptions in the APAC region, digital content providers can give consumers a range of payment options and provide more information on how they will be charged for content. As APAC consumers become increasingly discerning and dig deeper into how they are charged, content providers' longevity will hinge on their ability to structure service and payment models around these diverse and evolving expectations."
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