Subscription marketers face mixed prospects in 2023, judging by the State of Subscription 2023 Annual Report by the subscription trade association (SUBTA).
For instance, 76% of consumers plan to keep the same number of subscriptions or increasing them this year, Yet 77% expect to spend the same or less on them as they did in 2022.
Almost 40% of consumers say they have the exact number they need. Altogether, 61% of consumers have 1-4 subscriptions.
During the recent holiday season, 56% of consumers gifted a subscription, the most popular gift being streaming.
“Subscriptions continue to be integrated into our lives, but consumers are increasingly critical of the value of each subscription, how many subscriptions they have, and how that brand supports their overall life goals,” says Paul Chambers, CEO of SUBTA.
Chambers adds, “Our research shows that the industry’s success will undoubtedly continue and rapidly grow, but brands need to be keenly focused on how they engage their community and enrich their life beyond the products.”
The main reasons for cancelling subscriptions are:
But retention is motivated by these factors:
And here are the reasons for signing up for a subscription:
The study states that the subscription industry is worth $275 billion as of Dec. 31, 2022, a $51 billion increased over 2021.
The full report will be available to in-person attendees at the SubSummit conference in Dallas on May 31-June 2.