36 Subscription Statistics To Know: Staying Ahead of The Market

Since the launch of YouTube, the digital streaming market has changed almost beyond recognition. Netflix was the most popular subscription service, but the emergence of additional services such as Amazon, Disney, and HBO has increased competition. Almost every TV channel has its own subscription service, and consumers increasingly subscribe to multiple services. How is this new landscape affecting consumer behavior?

Subscription Economy Statistics

1. The market size of the digital subscription economy worldwide amounted to 650 billion U.S. dollars in 2020. (UBS)

2. The subscription economy is forecasted to expand into a 1.5 trillion USD market by 2025, with an annual growth rate of 18%. (UBS)

3. The subscription economy has grown more than 435% in the last nine years. (WNIP)

4. Over the past decade (2011-2021), the Subscription Economy Index has grown 4.6x faster than the S&P 500. (SEI Report)

5. Subscription businesses have grown 5-8x faster than traditional businesses (SEI Report).

In 2020, they demonstrated revenue growth at a rate of 11.6%, while product-based peers' revenues declined by -1.6%.

These statistics for the subscription economy appear to show a sector that's healthy and continuing to expand. But, of course, the primary reason for such rapid expansion is that the market is still relatively new. Many consumers still watch their content through more traditional outlets, such as cable TV and standard broadcast TV, and older generations still cling to their old ways of shopping. Hence, at least room for the market to expand over the coming decade.

Subscription User Statistics

6. 78% of international adults currently have subscription services. (WNIP)

7. Men have averaged five streaming video services since the onset of the COVID-19 pandemic, while women have averaged four. (Deloitte)

8. 86% of adults ages 18-34 hold a subscription to a service, compared to just 69% of adults 55 or over. (Payments Journal)

9. The U.S. consumes 53% of all digital subscriptions (Statista)

Europe and China followed as leading markets, representing 21 percent and 14 percent of global digital subscriptions.

10. The average US consumer has 12 paid media and entertainment subscriptions. Millennials average the most subscriptions at 17. (Deloitte)

Time-poor consumers continue pushing demand for digital subscription models, from newspapers to TV channels and computer software, to increase their access to goods and services without leaving their homes or offices. This is led by subscription services climbing fast in video content as more new players continue to enter the market. In addition, more advanced economies like the United States, which has led the market in subscription services, are more likely to have consumers able to afford expenditures on what is viewed as non-essential items.

Subscription Services and Platform Statistics

11. As of 2022, the most popular streaming platform is Netflix, which has more than 220 million subscribers globally.

12. As of 2022, Spotify is the top music streaming subscription service with 422 million users and 183 paid subscribers.

13. Mobile app subscriptions make up $8.5 billion of the digital subscription market share. (Business of Apps)

Although Netflix doesn't have the market domination on video content it previously enjoyed, its shift toward making original content has, so far, kept it on top. In terms of music, Spotify's instant brand recognition and access to a vast catalog of songs have ensured its position as the number one music streaming service. We can also see here that the continual improvement of, and increased access to, mobile device technology is making mobile app use increasingly popular.

Staying Ahead of The Market

Subscription Box Statistics

14. 54% of online shoppers are members of subscription box services. (Clutch)

15. Projections estimate that the subscription box market will increase to $65 billion by 2027. (imarc)

16. 46% of consumers who already subscribe to one service (such as video streaming) opt into subscription boxes for their products. (McKinsey)

17. Nearly 40 percent of e-commerce subscribers (subscription boxes) have canceled their subscriptions at one point or another. (McKinsey)

18. More than 33% of consumers who sign up for a subscription box service cancel in less than three months, and over half cancel within six months. (McKinsey)

Subscription boxes are a fantastic way for businesses to keep consumers spending, as they give access to unique products supplied regularly without spending extra time shopping. Many latched onto this model as more small businesses launched during the pandemic. Even if half of the consumers signing up cancel within six months, it's still a pretty lucrative market that will continue to grow over the next few years.

Video Streaming Services Statistics

19. The global streaming market projected worth for 2029 is upwards of $1.69 trillion. (Fortune Business Insights)

20. 82% of U.S. consumers subscribe to at least one paid streaming video service. (Deloitte)

21. The average subscriber has four paid video streaming services. (VentureBeat)

22. 59% of adults ages 18-34 have a video streaming subscription, compared to just 35% of adults over 55. (Payments Journal)

23. The average revenue per user (ARPU) in the Video Streaming (SVoD) segment is projected to be $69.66 USD in 2022 (Statista)

Except for sporting events, consumers are increasingly less willing to live by the strict programming schedules that traditionally characterized TV viewing habits. Until recently, Netflix had most of the content available, but with Disney and Amazon and a host of more minor services moving into the market, consumers have to pay for multiple subscription services to access all the content they want. This trend is particularly prevalent in younger people who increasingly work multiple jobs with irregular hours.

Value of Subscription Models

24. 70% of business leaders claim subscription business models are crucial to their prospects in the future. (Global Banking and Finance)

25. Only a quarter (24%) of businesses currently implement subscription models. (Global Banking and Finance)

26. 64% of consumers say that they feel more connected to companies with which they have a subscription vs. one-off purchases. (WNIP)

27. 53% of senior finance executives say at least 40% of their organizations' revenues are recurring. (CFO)

These numbers are quite interesting; although most business leaders say subscription models are key to their future, less than a quarter are putting this into practice. With most customers saying they feel more connected to companies offering subscription services, this could prove a problem for many businesses. Of course, the practicalities of introducing a viable subscription model are challenging, and not all products and services are best suited to this model. That said, this could prove a dividing line between companies that fail or succeed in the long term.

Subscription Cost and Payment Statistics

28. On average, consumers spend roughly $219 on subscription services, 2.5X higher than consumers estimated. (C+R Research)

29. 44% of streaming subscribers share their subscriptions with someone. (C+R Research)

30. 72% of subscription users employ automatic monthly payments. (C+R Research)

31. About three-quarters (74%) of consumers find it easy to forget their recurring monthly subscription service charges. (C+R Research)

32. 80% of subscription users cancel because of the content's lack of enjoyment and the subscription's high price. (Statista)

Subscription Cancellation Statistics

33. Men are twice as likely as women to drop a streaming video service so they can subscribe to a new one. (Deloitte)

34. The younger a customer is, the more likely they are to cancel and resubscribe at a later date. (Deloitte)

35. As of May 2022, 33% of consumers said they would cut back on subscription costs within the next six months. (C+R Research)

36. 66% of U.S. adults say they plan to save money by cutting back on contracts and subscriptions. (Statista)

Cancel Your Subscriptions With Ease

These statistics add up to this: subscription services are here to stay as a significant part of the modern business and economic landscape. But, of course, with the current grim global economic outlook and the trend of increasing streaming prices, many consumers are looking to cut back, and many others like to switch between various providers as they see fit, which is the last group of statistics that seems to show. Unfortunately, however, these figures also show us that consumers consistently underestimate how much they spend on subscription services and may even lose track of how many they have.

Fortunately, Billshark has the answer. Billshark's subscription cancellation allows you to keep track of all your subscriptions in one place and cancel them as you see fit. This can save you the time of looking through bank statements and credit card bills and save you a lot of money.

So why not start saving today and sign up for Billshark's subscription cancellation service?

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