18.09.2023 Marketing and PR

Internet Subscriptions: Market Value, Development Trends, and... Risks

KrzysztoF

According to McKinsey & Company, the number of subscription users globally has increased by over 17% in the past year. A report from UBS Group AG indicates that the total value of the global subscription market will reach as much as $1.5 trillion by 2025. This is twice as much as in 2020!

illustration: bing.com/create

As highlighted by the Newseria Information Agency, interest in subscriptions surged during the pandemic when online shopping became the only option for many people. The main arguments driving this growing interest are primarily savings and convenience. An important factor is also price, as subscriptions often offer discounts and better rates than one-time purchases.

According to a survey by Blue Media "Finances of Poles during the Pandemic":

• More than half of Poles used online subscription services.
• The most popular were access to movies and series, software, as well as press and online games.
• Over 30% of Poles also use non-internet subscriptions: medical care, food delivery, fitness clubs, and books.
• More than 70% of respondents indicated that subscriptions help them save money compared to one-time purchases.
• Other important factors that encourage Poles to subscribe are convenience and ease of use.
• Especially women in large cities appreciate the ability to use products and services without having to leave home.
• Men and older individuals, on the other hand, value simple and intuitive solutions that allow them to easily manage their subscriptions.

Furthermore, a survey conducted by McKinsey & Company revealed that in 2022, the average American had 10 subscriptions, while the average resident of Western Europe had 9. The biggest players in this market are streaming platforms like Netflix, HBO Max, and Spotify.

advertisement

The average Pole, as estimated by Newseria, paid for various subscriptions an average of almost 480 PLN per month. This is not insignificant, but it is worth remembering that this cost already includes access to movies, series, music, software, press, online games, medical care, food delivery, fitness clubs, and books. Compared to reports from 2021, the popularity of subscriptions in Poland has slowed somewhat, but it remains one of the most important trends in our purchasing habits.

Subscription Curiosities

It is worth noting that so-called subscription boxes, which are monthly packages containing various products such as toys, cosmetics, or food, are also gaining popularity—emphasizes the Newseria agency. The authors of the report give examples of curiosities, such as eco-friendly toilet paper made from bamboo or subscription gifts surprises. In many countries, including Poland, there are already subscriptions for renting luxury goods and entirely new products in this industry. Here are some examples:

• If you are planning an elegant dinner or an official occasion, you can purchase a dress subscription and not spend a fortune on a one-time outfit. In the "order one, return another" model, you can change dresses as often as you want.
• Young parents can also benefit from subscriptions. The SNOO crib, which helps babies sleep through the night, costs a fortune. With a subscription, parents can rent the crib for several months or years and save a lot of money.
• The increase in interest—and the diversity of services—can also be seen in cosmetics, personal care, and hygiene products. There are increasingly original proposals, such as renting a garden called Własny Ogródek in a rural area of Pomerania, where you can grow vegetables, have 24-hour video monitoring, and professional gardening service.
• An interesting novelty for young parents is a diaper subscription introduced by Bambiboo, a Polish brand of eco-certified diapers made with organic cotton and bamboo fiber.

In the West, it is anticipated that subscription providers will increasingly integrate their products and services in the coming years. It is possible that soon washing machines will be able to independently order laundry detergent by analyzing our monthly usage.

However, authors and analysts warn against an uncritical approach to this new trend. Lack of control over expenses risks leading to financial troubles or even debt. Therefore, although subscriptions seem to be a convenient solution allowing for lower unit prices, it is worth considering carefully before purchasing another one.

Share the article:

See articles on a similar topic:

LabOOOratorium. Education and Business Cooperate in Win-Win-Win Model

fundacja OOO
How to combine diversifying activities in kindergartens and schools with setting innovative trends in education and social engagement of businesses? The educational foundation Ogólnopolski Operator Oświaty and the company Musicon show how to do it right.

Email Marketing Done Right. How to Avoid Ending Up in SPAM

BARD
One in three Poles receives between 10 and 20 promotional emails daily, and more than half receive at least 10, according to a study by Redlink. For an email to stand out among the competition and be read by the recipient, three key factors are essential, capturing the most attention from recipients.

A Socially Responsible Company. This Image Pays Off

RINF
Poles and Spaniards are the most likely in Europe to buy from socially responsible companies, according to the Global State of the Consumer Tracker report, developed in late June by Deloitte’s consulting experts.

Dietary Supplements. How Products Masquerading as Medications are Sold

Ewa Zygadło-Kozaczuk
Colorful packaging entices us with miraculous health benefits, and we buy them, hoping for a fit body, good sleep, great mood, and excellent sex. But do we know what lies behind that magical pill, capsule, or syrup? Are we aware that these advertised products are merely masquerading as medications?

Advertising Without Cookies. Is the Industry Ready for a Digital Revolution?

Krzysztof Fiedorek
The year 2024 was set to bring a revolution to the advertising industry as Google announced the removal of cookies in the Chrome browser for millions of users, sparking the beginning of a cookie-free era. However, Google’s change of heart surprised the market. A report on this topic was prepared by analysts from ID5.

Do Ads on TV Annoy You? Think Again, It’s Quite the Opposite!

Bartłomiej Dwornik
Advertisements don’t irritate viewers; instead, they increase the appeal of television programs, according to research published in the Polish edition of Harvard Business Review. Viewers are actually willing to pay more for shows they watched with ad breaks.

Artificial Intelligence and Marketing. Industry Expectations and Concerns

KrzysztoF
Marketers using generative artificial intelligence see its potential but also perceive risks. The Generative AI Snapshot Series survey conducted by Salesforce and YouGov shows that the industry expects significant changes - and soon.

More in the section: Marketing and PR