The brand new SubscriptionX 2025 report, launched at RetailX Event’s Spring Festival last week, highlights that consumers increasingly favour participation over possession.
It seems we are getting more streamlined in our shopping habits. Subscriptions are gaining in popularity worldwide, with the global subscriptions, membership and loyalty industry valued at an estimated $3tr in 2024, this is up from $2tr in 2023.
Streaming is King
Ampere Analysis forecasts the Asia Pacific region will be a major driver of this subscriber growth for streaming services over the next five years, as the relatively mature US market experiences increasing saturation.
India, in particular, has emerged as Netflix’s second-largest market for subscriber additions in 2024, and the streaming company still has significant untapped potential in the country. Netflix’s successful expansion into the Indian market has been supported by a tailored pricing strategy and the introduction of locally relevant content. This has resulted in notable subscriber gains together with heightened popularity among Indian viewers.
Subscription streaming looks set to become the largest contributor to the global television economy. By 2029, subscription video-on-demand (SVoD) platforms are projected to generate nearly $170bn annually from paid subscriptions, with Netflix accounting for a 29% share of this.
Furthermore, as streaming services that were traditionally ad-free start to introduce advertising tiers, an additional $22bn in revenue is expected from ad sales in 2029.
Multiple subscriptions are the norm
Europeans spend an average of €696 on subscription apps and services annually, in addition to standard bills. By 2026, around 86m Europeans are forecast to have a Netflix subscription (in 2020 this was just below 60mn). According to research from Bango, on average, European consumers have 3.2 subscriptions, with the UK and Germany out in front at 3.3.
In the face of the ongoing and ever-increasing cost of living, not to mention global economic uncertainty, subscriptions offer a neat way for consumers to budget more effectively. With predictable monthly costs, subscribers are able to better manage their expenses, especially for essential services and entertainment. Subscriptions also provide easy access to a wide range of content and services, with very little effort required on the part of the consumer.
But too much admin is off-putting
However, when effort becomes necessary, consumers hold back. While the appetite for subscriptions remains high, with 60% of European consumers saying they would sign up for more if they could afford it, there is growing frustration with managing multiple subscriptions. This means consolidated subscription management services (‘super bundling’) are also on the rise.
Deloitte forecasts the practice of ‘stacking’ multiple standalone streaming subscriptions will decline in 2025 thanks to consumer fatigue from managing multiple services and a growing demand for simplified access to diverse content.
Whatever next?
There is almost nothing you can’t subscribe to now, from cheese to toilet rolls and poetry. And we are increasingly migrating most of our essentials to a subscription model.
Research last year from Deloitte predicted that by 2025 more than €22bn of new annual autofinancing would shift to the subscription segment, and that is set to accelerate further in the second half of the decade. The research also suggests that used cars might even start to move to a subscriptions model in time and it’s not outside the realms of possibility that we’ll soon be able to start to manage things like accommodation requirements this way.
How online retailers respond to these changing habits, and their associated frustrations, is likely to determine their future success in the global market.
This is an excerpt from the RetailX Subscription Report 2025 provides an in-depth look at the ever-evolving subscription economy, offering retailers a roadmap to tap into this growing trend. Whether it’s curated meal kits, fitness programs, or access to exclusive digital content, the subscription economy is reshaping how consumers engage with brands—and this report aims to help you harness its potential.
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