The subscription economy is on track to reach nearly $1 trillion globally by 2028, up from $593 billion in 2024. According to a report by Juniper Research, this growth isn’t confined to digital subscriptions alone. In fact, it’s spreading across various sectors, including Mobility-as-a-Service and delivery services – a significant shift in consumer habits and business models.
Expansion Beyond Traditional Models
This evolution into new areas highlights a growing appeal. What began with media and entertainment is now a staple in other industries, offering businesses a steady revenue stream and providing consumers with continuous access to products and services. This adaptability and potential for innovation are key drivers behind the subscription economy’s expansion.
Adjustments in regulations, such as the ‘click to cancel’ initiative in the U.S., aim to simplify subscription cancellations for consumers. While this could potentially increase churn rates, it also encourages subscription businesses to invest more in customer retention. The focus on reducing churn underscores the ongoing evolution of subscription services, balancing consumer protection with business growth.
Hyper-personalization is also becoming increasingly important in retaining customers. Sectors like digital music and video are leading the way in personalized experiences, contributing to a projected combined revenue of $370 billion by 2028. Subscription services are advised to invest in AI and data analytics to enhance marketing strategies and maintain strong customer relationships.
