Upsurge in consumer spend on home delivery, video and music streaming subscriptions
Major streaming platforms like Netflix, Showmax and Amazon Prime have increased since lockdown was instituted last year.
A year since SA went into lockdown, FNB data shows an upsurge in customers who are spending on home delivery, video and music streaming apps for convenient access to services.
This has led to booming usage of platforms like Mr D Food, Showmax, iTunes, and Spotify. Raj Makanjee, CEO of FNB Retail and Private Banking said the pandemic has accelerated the use of digital platforms and home delivery services for a safer and convenient exchange of goods, services and payments.
“As a pioneer of digitised and unassisted financial services, we are in a position to support our customers by making it easier for them to pay for goods/services and manage their money via our trusted platform,” said Makanjee.
According to FNB, some of the prominent trends from its data include the following:
Home delivery While FNB data shows that the Uber app is still the most used delivery app, Mr D Food recorded the most increase in usage, with a 140 per cent increase since the start of lockdown. When the Bank compared the number of customers who spent on Mr D Food in the month of March 2021 versus March 2020, it saw a 98 per cent increase. There was no major change in the average amount that each customer spent on take-out food before versus after the start of lockdown.
Video subscriptions Spend on major streaming platforms Netflix, Showmax and Amazon Prime increased since lockdown. The average number of customers who paid for subscription with Netflix increased 64 per cent, Showmax increased by 78 per cent while Amazon Prime increased 50 per cent.
Music subscription Overall, music related subscriptions increased with Apple iTunes up 18 per cent per month on average. Usage of Spotify increased the most by 83 per cent and the move from Google Music to YouTube Music saw a 188 per cent jump in monthly subscriptions to YouTube.
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