economy
The rise of the always-on economy: subscriptions beyond streaming
We are all familiar with the subscription economy, and it certainly works as a reminder of the COVID-19 pandemic, when we were all hooked on our TVs watching Netflix or listening to our favorite music artist on Spotify.
TL;DR
- The subscription economy, a recurring revenue model, has historical roots in the 1800s and has experienced considerable growth in the last 20 years.
- Global subscription market revenue was $722 billion in 2025 and is forecasted to reach $1.2 trillion by 2030, with an average annual growth rate exceeding 15%.
- Software as a Service (SaaS) is the largest segment of the subscription market.
- The model provides benefits for businesses like steady income and brand loyalty, and for consumers, including personalization and convenience.
- Industries like gaming, healthcare, health tech, e-learning, and the creator economy have significantly adopted subscription models.
- Challenges include subscription fatigue, lack of perceived value, unpredictable fees, and the pressure for ongoing product development and customer engagement.
- Future trends may involve hybrid models combining subscriptions with usage-based pricing and data-driven personalization.