GITNUX MARKETDATA REPORT 2024

Subscription Economy Industry Statistics

The Subscription Economy industry is anticipated to continue its rapid growth, with projections indicating that it will reach a market value of $1 trillion by the year 2023.

Highlights: Subscription Economy Industry Statistics

  • The global subscription market was valued at over $350 billion in 2021.
  • The subscription box industry made $10 billion in annual retail sales by 2025.
  • In 2021, over 50% of U.S. online consumers had a streaming service subscription.
  • The subscription e-commerce market has grown by 100% each year from 2011 to 2020.
  • Subscription services account for about 18% of online shopping, up from 5% in 2014.
  • Netflix held about 31% of the global video streaming market share in 2021.
  • There is a 24% increase in global subscription e-commerce during the pandemic.
  • The fastest-growing sector within the subscription economy is business subscriptions with a growth of 25% from 2020 to 2021.
  • In 2021, 15% of online shoppers have signed up for one or more subscription services.
  • More than 7 out of every 10 consumers in the U.S. subscribe to at least one subscription service.
  • The churn rate, the rate at which customers stop subscribing, is 6.7% for the subscription box industry.
  • In 2018, Spotify claimed 36% of global streaming music subscriptions.
  • Sales for subscription service providers are five times higher on mobile platforms.
  • The market size for the global database, storage & backup software publishing industry is $229.9bn in 2021 with a CAGR of 8.6% during 2016-2021.
  • Around 34% of millennials prefer to use a subscription model for services rather than owning products.
  • Video content subscriptions growth rate has quadrupled in the last quarter of 2019 compared to 2018.

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The Latest Subscription Economy Industry Statistics Explained

The global subscription market was valued at over $350 billion in 2021.

The statistic stating that the global subscription market was valued at over $350 billion in 2021 indicates the total market size of subscription-based services worldwide. This figure includes revenues generated from various industries such as streaming services, software subscriptions, e-commerce memberships, and more. The significant growth in the subscription market can be attributed to the increasing consumer preference for convenience, personalization, and access to a wide range of products and services on a recurring basis. This statistic underscores the importance of subscription models in today’s economy and highlights the substantial revenue opportunities for businesses that can effectively leverage this trend.

The subscription box industry made $10 billion in annual retail sales by 2025.

The statistic that the subscription box industry made $10 billion in annual retail sales by 2025 indicates that this particular sector experienced significant growth and reached a substantial level of revenue generation. The figure highlights the increasing popularity and demand for subscription box services, where consumers receive curated products on a recurring basis. This growth trend could be attributed to various factors such as convenience, personalized offerings, and changing consumer preferences towards subscription-based models. The $10 billion annual retail sales figure suggests that the subscription box industry has become a notable player in the retail market, capturing a significant share of consumer spending by providing a unique and appealing shopping experience through curated product assortments.

In 2021, over 50% of U.S. online consumers had a streaming service subscription.

The statistic “In 2021, over 50% of U.S. online consumers had a streaming service subscription” indicates that a majority of individuals who use the internet in the United States were subscribed to a streaming service last year. This statistic suggests a widespread adoption of streaming services among the online consumer population, highlighting the increasing popularity and prevalence of platforms like Netflix, Hulu, Disney+, and others. The data implies that streaming services have become a common form of entertainment consumption for many Americans, signaling a shift in how people access and engage with media content in the digital age.

The subscription e-commerce market has grown by 100% each year from 2011 to 2020.

The statistic “The subscription e-commerce market has grown by 100% each year from 2011 to 2020” indicates that the market size of subscription-based e-commerce services has doubled every year over the specified period. This exponential growth pattern suggests a rapid and significant increase in the number of consumers subscribing to such services, likely driven by factors such as convenience, personalization, and cost-effectiveness. Such consistent and substantial growth highlights the popularity and success of the subscription e-commerce model, as well as the potential opportunities and competition within the market for businesses operating in this sector.

Subscription services account for about 18% of online shopping, up from 5% in 2014.

The statistic states that subscription services now make up approximately 18% of total online shopping sales, which is a notable increase from the 5% market share they held in 2014. This suggests a growing trend towards consumers opting for subscription-based models when making online purchases. The significant rise in market share indicates that more consumers are embracing the convenience, flexibility, and often cost-effectiveness of subscription services for their shopping needs. This shift highlights a change in consumer behavior and preferences, as well as the evolving landscape of e-commerce towards recurring revenue models.

Netflix held about 31% of the global video streaming market share in 2021.

This statistic indicates that as of the year 2021, Netflix had a dominant presence in the global video streaming market with a market share of approximately 31%. This suggests that nearly one-third of all video streaming services accessed worldwide were through Netflix. The high market share signifies Netflix’s strong standing in the industry, reflecting its popularity and widespread adoption among consumers. This statistic highlights the competitive position of Netflix as a leading player in the video streaming market and showcases its significant impact on the way people consume entertainment content globally.

There is a 24% increase in global subscription e-commerce during the pandemic.

The statistic “There is a 24% increase in global subscription e-commerce during the pandemic” indicates that there has been a significant growth in the use of subscription-based e-commerce services worldwide since the onset of the pandemic. This suggests that more consumers have turned to subscription services for their shopping needs during this time, possibly due to factors such as convenience, safety concerns, and the shift towards online shopping. The 24% increase highlights the scale of this trend and underscores the impact of the pandemic on consumer behavior and the e-commerce industry as a whole.

The fastest-growing sector within the subscription economy is business subscriptions with a growth of 25% from 2020 to 2021.

The statistic indicates that the business subscriptions sector, within the broader subscription economy, experienced significant growth of 25% from 2020 to 2021. This remarkable growth rate suggests a growing trend of businesses opting for subscription-based services and products. The increasing adoption of business subscriptions could be attributed to various factors such as the convenience, cost-effectiveness, and flexibility that subscriptions offer to businesses. The sharp rise in growth also underscores the importance of subscription models in today’s economy and suggests that businesses are increasingly recognizing the benefits of subscribing to services over traditional purchasing methods.

In 2021, 15% of online shoppers have signed up for one or more subscription services.

The statistic indicates that in 2021, 15% of individuals who shop online have subscribed to one or more subscription services. This implies that a relatively small percentage of online shoppers are opting for ongoing subscription models, which likely provide them with regular access to specific products or services for a monthly or yearly fee. The increasing popularity of subscription-based models in various industries such as streaming services, e-commerce, and software as a service (SaaS) suggests that there is a segment of online shoppers who prefer the convenience and benefits that subscriptions offer. This statistic can be used by businesses to understand consumer behavior trends and make informed decisions about offering subscription services as part of their marketing and sales strategies.

More than 7 out of every 10 consumers in the U.S. subscribe to at least one subscription service.

This statistic indicates that a significant majority of consumers in the United States, specifically over 70%, have signed up for at least one subscription service, such as streaming platforms, magazines, meal kit deliveries, or online shopping memberships. This suggests a growing trend towards subscription-based models of consumption, where individuals opt for recurring payments in exchange for access to various products or services. The high prevalence of subscription services among U.S. consumers highlights the appeal and convenience of this business model in offering continuous and personalized offerings to meet consumer needs and preferences.

The churn rate, the rate at which customers stop subscribing, is 6.7% for the subscription box industry.

The churn rate of 6.7% for the subscription box industry indicates the percentage of customers who cancel or do not renew their subscriptions within a specific time period. A churn rate of 6.7% suggests that on average, about 6.7 out of 100 customers stop subscribing to subscription box services, reflecting the industry’s customer retention challenges. Monitoring and managing the churn rate is crucial for businesses in this industry, as a high churn rate can impact revenue and business growth. It is important for subscription box companies to identify the reasons for customer attrition and implement strategies to improve customer satisfaction and loyalty to reduce the churn rate and sustain business success.

In 2018, Spotify claimed 36% of global streaming music subscriptions.

The statistic “In 2018, Spotify claimed 36% of global streaming music subscriptions” indicates that out of all the paid music streaming subscriptions around the world in 2018, Spotify held a market share of 36%. This means that around one-third of all individuals who were paying for a music streaming service chose Spotify as their platform of choice. This statistic highlights Spotify’s dominance and popularity in the global music streaming industry at the time, showcasing their significant presence and influence in the market compared to other competitors.

Sales for subscription service providers are five times higher on mobile platforms.

The statistic indicates that sales generated by subscription service providers are significantly higher on mobile platforms compared to other types of platforms, with sales being five times greater in this context. This likely suggests that consumers are increasingly utilizing their mobile devices to access and purchase subscription services. The higher sales on mobile platforms could be attributed to the convenience and accessibility that mobile devices offer, allowing users to easily sign up for and engage with subscription services on-the-go. This trend highlights the importance for subscription service providers to optimize their offerings and marketing strategies for mobile platforms to capitalize on the growing demand and potential for increased sales in this channel.

The market size for the global database, storage & backup software publishing industry is $229.9bn in 2021 with a CAGR of 8.6% during 2016-2021.

The statistic indicates that the worldwide market size for database, storage, and backup software publishing industries reached $229.9 billion in 2021. This figure represents the total revenue generated by companies within this sector. Additionally, the compound annual growth rate (CAGR) of 8.6% over the period from 2016 to 2021 signifies the average annual growth rate of the market size during these five years. This growth rate shows a strong and consistent expansion in the industry over the specified time frame, reflecting the increasing demand for database, storage, and backup software solutions on a global scale.

Around 34% of millennials prefer to use a subscription model for services rather than owning products.

The statistic indicating that around 34% of millennials favor using a subscription model for services over owning products suggests a growing shift towards a preference for access and experiences over ownership among this demographic group. This trend may be driven by factors such as convenience, cost-effectiveness, and the desire for flexibility in accessing a variety of products and services without the burdens of ownership. The rise of subscription-based services in various industries, including media streaming, beauty products, and meal kit delivery, reflects the changing consumption patterns and values of millennials, highlighting their prioritization of convenience, sustainability, and affordability in today’s sharing economy.

Video content subscriptions growth rate has quadrupled in the last quarter of 2019 compared to 2018.

The statement indicates that the rate of growth in video content subscriptions, such as those for streaming services like Netflix or Hulu, experienced a fourfold increase in the last quarter of 2019 compared to the same period in 2018. This suggests a significant surge in the number of individuals or households subscribing to video content services within that timeframe. The quadrupling of the growth rate implies a substantial acceleration in the adoption and popularity of such services, highlighting a shift towards increased consumption of video content through subscription-based models. This trend may be indicative of changing preferences among consumers towards digital streaming platforms over traditional forms of media consumption.

Conclusion

With the subscription economy industry expanding rapidly and showing significant growth in various sectors, it is evident that businesses are increasingly adopting subscription-based models to drive recurring revenue and build long-term customer relationships. The statistics highlight the immense potential and opportunities that lie within the subscription economy, making it a compelling strategy for businesses to innovate and thrive in today’s dynamic market landscape.

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How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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