Consumers are taking control of their subscription services with many choosing to pause rather than cancel, according to new research.
The 2025 State of Subscriptions report found subscription pause usage surged by 68% year-on-year in 2024, with the digital media and entertainment category experiencing a 330% increase.
Additionally, 20% of acquisitions are returning subscribers, with over $200mn generated from subscribers who re-subscribed after pausing. Businesses offering a pause option saw 25% of subscribers pause instead of cancelling.
The report highlighted a real focus on retention, as acquisition rates dropped 4.1% to 2.8%. “Subscription businesses should continue to focus on cost effective acquisition strategies while improving churn through subscriber engagement and loyalty,” the report stressed.
Brian Geier, VP business intelligence, Recurly, added: “This year’s findings show that retention is an extraordinarily vital growth driver. What’s even more critical is how swiftly merchants act to secure subscriber loyalty. The first week or month of a subscriber’s experience is essential for long term retention, and that’s the mindset successful teams are taking to keep revenue moving in the right direction year over year.”
Furthermore, the report stressed that subscribers value options with three-quarters of merchants offering both monthly and annual plans, with consumer goods and retail leading the trend toward monthly options.
Healthcare (52%), alongside consumer goods and retail (54%), show lower adoption of combined monthly and annual plans, with a stronger focus on monthly options at 45% and 38%, respectively.
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