How many subscriptions do you have? Be honest. Not only do I have monthly payments for entertainment (Netflix, Prime Video, Hulu, etc.), but it seems like every different app or software is now using the model as well.
I began to wonder, "am I the only one who's tired of all the subscriptions?" Turns out I'm not.
According to a survey conducted by the Wall Street Journal, the average American household now has 13 different subscriptions, including services for streaming video, music, and news, as well as monthly deliveries of groceries, personal care products, and pet supplies. The result is that many consumers are feeling overwhelmed by the number of bills they receive each month and are unable to determine the true cost of the services they use.
(WSJ article here)
Do you actually use all of them? I'm talking about those monthly apps and software that get us all to pay up front for a year at a time. Well, Forrester Research says that only 44% of people actually use the products after subscribing to a free trial.
Finally, there's a sense of lock-in involved with the subscription model. Usually you need to sign up for a long-term contract to use the products or services. Often, there can be an early exit fee (signed up for the gym recently?).
Going over my monthly budget certainly brings to light the number of products and services my family and I consume. Most of them we enjoy. Most of them we use regularly. But there were also a few that weren't of interest to us anymore. So, I unsubscribed. Kudos to all the companies that let you do that.
"The subscription model has proven to be a successful way for companies to generate recurring revenue, but it's important for businesses to understand the reasons why consumers may be frustrated with the model and to make changes that address those concerns." - Julie Supan
Do you enjoy this business model? I understand why businesses do it, and I even enjoy the à la cart option for my streaming options. But for me, it's getting a bit tiresome. I'd love to hear what you think about it.
Writer of screenplays, fiction novels, inspirational stories, and short stories.