How many subscriptions does everyone have to things these days? Come on, be honest. If you’re anything like the MediaCat team, we have a lot. But how close are we to breaking point, in terms of what we can (and are willing to) subscribe to? Our network had some thoughts…
Guy Meyers — Regional Director, Customer Success – EMEA at Recurly
Some commentators seem to suggest that consumers are frustrated by the number of subscriptions available, but our Recurly data seems to suggest the contrary. Our State of Subscriptions 2024 report, which surveyed players such as Paramount+, Starz and Twitch, found that within Digital Media and Entertainment the number of active subscribers had gone up 124% since 2020, and for digital publishing that number was a whopping 536%. This data suggests that consumers are increasingly more comfortable with the idea of a subscription service. While the price point is going up for many subscription services, we note that consumers will continue to subscribe if there is value in the service. One-size-fits all doesn’t cut it.
Consumers want a personalised experience, and this is currently underutilised across the board, despite the advancements in technology that make this possible on a large scale. And with recent options for ad-tiered services it has never been easier to access subscriptions on a plan that is right for the individual. If there is a saturation point for subscription services, then we are yet to reach it.
Imogen Kemp-Hunt — Senior Digital Strategist at Brandwidth
It’s no surprise that some subscription services are seeing a decrease in active customers, as food delivery platforms such as Mindful Chef have turned from being a pandemic fuelled necessity to a luxury. But with 91% of subscription-free Brits claiming they have no desire to sign up to one, brands must focus on increasing value to encourage customer retention. Actively seeking customer feedback through surveys, and utilising tech such as AI to understand trends and pain points, will enable brands to evolve their offering in line with changing consumer needs. In doing so, not only will these businesses gain competitive advantage through their optimised service offering, they’ll guarantee increased customer loyalty, which goes a long way in securing repeat business. Brands that fail to evolve however, risk losing their customers completely.
Simon Spyer — CEO, Data-Driven and Performance Marketing at Iris
The subscription market has, indeed, hit saturation point, and without active member participation services are destined for swift cancellation. To cut through, subscription services must engage their audience effectively. This entails using earned channels to demonstrate the service’s role in consumers’ lives and making it easy to try and buy. Success hinges not only on acquisition strategies but also on pricing and promotions. Finding the right balance is a science, not an art, as it directly impacts engagement and retention. A clear subscription proposition is paramount. Services must offer value beyond mere utility and convenience; they must deliver a superior experience rooted in a deep understanding of their members’ needs. This requires building lasting relationships and leveraging insights gained over time. In an era of choice overload, participation is the linchpin for survival, and it’s up to subscription services to deliver on this promise to secure their future.
Ivy Escopete — Senior Strategy Consultant at Cheil UK
Disconnection anxiety: subscriptions are taking over our lives and making us nervous. Almost every week, we see a new subscription service popping up. It feels like they are infiltrating nearly every aspect of our lives — from streaming services, meal deliveries and fashion and beauty boxes through to health tracking apps. The convenience and variety of subscriptions are luring us into signing up for one subscription after another. However, as we let subscriptions get more entangled in our lives, the dreadful recurring payments and nervousness on over-reliance begins to creep in. Consumers are starting to develop a fear of commitment in subscriptions, not just because of the prices, but also because they’re unsure about the long-term value. As we add more subscriptions into our lives we begin to question if this is forever, and we also start to become more worried about how it all ends. Imagine if the three-year health data that you’ve been tracking suddenly vanishes, or if your favourite video game subscriptions suddenly ends. Countless amounts of data and progress will be gone.
With the exponential rise of subscription services the main concern is if we are relying on them too much. Because if or when it all ends — how can we carry on without them? Perhaps it’s time to re-evaluate as consumers if we really need that extra subscription.
Featured image: Curology / Unsplash