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Global Subscription and Recurring Payments Market 2023

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Description

Countries Covered: Australia, Brazil, Canada, China, France, Germany, India, Iran, Israel, Japan, Mexico, Russia, Turkey, UK, USA.

Pages: 129

Publication Date: 15/02/2023

Questions Covered in the report:

  • What is the forecasted number of subscription OTT video services globally by 2025?
  • What are the emerging trends in the global subscription and recurring payments market?
  • What is the estimated market value of the global subscription economy by 2022?
  • What was the total consumer spending on the top 100 app store and Google store subscription apps as of 2021?

Key Findings:

The subscription-based business model is thriving post-pandemic, with consumers shifting towards subscriptions from niche industries: new yStats.com report

Despite the anticipated growth of the subscription economy, the current economic slowdown is hampering its pace.

The demand for subscription products increased during the pandemic, with social distancing and lockdown measures in place. For consumers, the subscription-based business model offers convenience, while merchants enjoy recurring profits and revenue even during tough times such as the downturn accompanying the COVID-19 pandemic. Thus, the market value of the subscription economy is estimated to witness double-digit growth between 2021 and 2022, reaching a value in the billions of Euros, as stated in the new yStats.com report. Compared to other age groups, millennials and bridge millennials held the highest number of average retail subscriptions as of May 2022. Although the subscription revenue growth fell slightly in 2020, the market showed signs of recovery as of 2021, and the subscription economy revenue growth reached a double-digit figure in 2021, higher than the S&P 500 revenue growth during the same period. Furthermore, consumer spending on the top 100 subscription apps from both app stores and Google Play showed a significant increase from 2020, with the total figure amounting to a certain billion Euros in 2021. With the rising popularity of subscription products and services, a high percentage of direct-to-consumer companies are forecasted to offer subscription services by 2023, as spelled out by the new yStats.com report. The growth trajectory of Subscription Video on Demand revenue and the number of subscriptions differs across regions, with MENA forecasted to witness the highest growth between 2021 and 2027 compared to other regions. Furthermore, mobile subscriber penetration in Iran and Israel is also set to increase by several percentage points between 2021 and 2025. Despite the projected growth of the subscription economy, consumers in some regions have indicated plans to cut back on their subscription services in the face of rising inflation. For instance, as of May 2022, consumers globally indicated intentions to decrease expenditure on various categories such as eating out, travel, and clothing, with media and streaming service subscriptions also making the list. Moreover, a comparison with other countries globally shows that Mexico had the highest share of consumers canceling at least one of their current subscriptions as of May 2022, as stated in the yStats.com report. Mexico, followed by Spain and Italy, were among the countries where the share of adults cutting back on media and streaming subscriptions was the highest during the same time period. In the UK, the share of households subscribing to at least one subscription service decreased slightly as of June 2022 compared to 2021. Nevertheless, the entertainment category still remained a preferred subscription category for consumers in the UK as of 2021.

Trends such as hyper-customization, advanced technology, and the rise of subscriptions in niche industrial sectors are set to shape the subscription market.

The booming subscription and recurring payments market is estimated to be soon dominated by emerging consumer trends such as hyper-customization, the use of AI, machine learning, and the rise of subscriptions of physical goods. One source cited in the yStats.com report forecasts that nearly half of the subscription revenue will come from physical goods as of 2022. Over the last few years, consumers have been demanding subscriptions to physical goods such as food & beverages, beauty products, fashion & apparel, along with other luxury items. The subscription economy is also more data-driven today. Companies and brands have access to large-scale customer data, which they use for improving service and customer experience. Predictive marketing tools, AI, and machine learning are also being used for forecasting growth trends. Customers are demanding that their products be more customized and personalized than before. Therefore, it is necessary for companies to track the customer journey to offer customized subscription packages to the consumer. Furthermore, digital wallets, BNPL, one-click payments, and auto-renewal of subscription packages are some other trends that will dominate the subscription and recurring payments market.

1. Management Summary

2. Global

  • Subscription Market Overview and Trends, October 2022 (1 of 2)
  • Subscription Market Overview and Trends, October 2022 (2 of 2)
  • Recurring Payment Market Overview and Trends, October 2022
  • Market Value of Subscription Economy, in USD billion, 2022 & 2026f
  • Key Metrics for a Subscription Business, October 2022 (1 of 2)
  • Key Metrics for a Subscription Business, October 2022 (2 of 2)
  • Key Benefits of a Subscription Business, October 2022
  • Top B2C E-Commerce Subscriptions Business Models, October 2022
  • Share of Subscribers, by Verticals, Exclusive of “Entertainment And SVOD Categories”, in % of Total Subscribers, December 2021
  • Year-On-Year Growth of Overall Subscription Customer Count, by Verticals, Exclusive of “Entertainment And SVOD Categories”, in % of Y-O-Y Growth, December 2021
  • Percentage Increase in Average Monthly Subscribers, by Verticals, Exclusive of “Entertainment And SVOD Categories”, in % of Y-O-Y Growth, December 2021
  • Monthly Recurring Revenue, in USD million, and MRR Growth Rate, by Verticals, Exclusive of “Entertainment And SVOD Categories”, in %, December 2021
  • Average Order Value Growth Rate, by Verticals, Exclusive of “Entertainment And SVOD Categories”, in %, December 2021
  • Lifetime Value Growth Rate, by Verticals, Exclusive of “Entertainment And SVOD Categories”, in %, December 2021
  • Share of Customer Retention Rate in Past 12 Months, by Verticals, Exclusive of “Entertainment And SVOD Categories”, in % of Customers, December 2021
  • Annualized Subscription Economy Revenue Growth vs S&P 500 Revenue Growth, in %, 2019-2021
  • Annualized Subscription Economy Revenue Growth vs S&P 500 Revenue Growth, in %, Q1 2022-Q2 2022
  • Subscription Economy Index Quarterly Revenue Growth Rate, in %, Q1 2020 – Q4 2021
  • Subscription Economy Index Average Churn Rate, in %, 2019-2021
  • Subscription Economy Index Growth Rate, by Sectors, in %, 2021
  • Consumer Spending in Top 100 Subscription Applications, by Revenue Channel, in USD billion, 2020 & 2021
  • Top Segment That Will Account for the Largest Share of Subscription Revenue, in % of Global Revenue, 2022e
  • Share of Direct-to-Consumer Companies That Will Offer Subscription Services, in %, 2023f
  • Share of Adults Who Would Make Cutbacks In Case the Cost-of-Living Increases, by Areas, incl. “Subscriptions”, in % of Adults, May 2022
  • Share of Adults Who Would Make Cutbacks to Streaming Subscriptions In Case the Cost-of-Living Increases, by Country, in % of Adults, May 2022
  • Share of Adults Who Have Cancelled At Least One Subscription vs Those Who Have Purchased At Least One Subscription, by Country, in % of Adults, May 2022 (1 of 2)
  • Share of Adults Who Have Cancelled At Least One Subscription vs Those Who Have Purchased At Least One Subscription, by Country, in % of Adults, May 2022 (2 of 2)
  • Generations That Cancelled And Resubscribed Paid Streaming Video Services Within the Last 12 Months, by Country, in % of Respondents, January 2022
  • Subscription OTT Video Service Users, in billions, and Year-on-Year Change, in %, 2020-2025f

3. North America

3.1. USA

  • Subscription B2C E-Commerce Sales, in USD billion, and Year-on-Year Change, in %, 2019-2024f
  • Share of Subscription Sales, in % of Total Retail B2C E-Commerce Sales, 2019-2024f
  • Number of Digital Subscription Buyers, in millions, and Year-on-Year Change, in %, 2019-2024f
  • Consumer Spending in Top 100 Subscription Applications, by Revenue Channel, in USD billion, 2020 & 2021
  • Average Number of Retail Subscriptions Held by Consumers, by Generation, in Absolute Numbers, October 2021, March 2022, & May 2022
  • Average Number of Retail Subscriptions Held by Consumers, by Income, in Absolute Numbers, October 2021, March 2022, & May 2022
  • Top Reasons Why Millennials Sign up for Subscriptions, in % of Millennials, 2021
  • Share of Respondents in Favor of Introductory Offers, vs Those in Favor of Subscription Gifting, by Generations, in %, 2021
  • SVOD Revenue, in USD billion, 2021 & 2024f
  • Average Annual Paid Music Subscriptions, in millions, 2019-2021
  • Share of Revenue From Paid Subscription, in % of Streaming Revenue, 2021
  • Share of Households Having a Video Subscription Service, in %, Q4 2021
  • Share of Subscribers Planning to Change Their Retail Subscription Usage Post Pandemic, in %, October 2021
  • Top Payment Processors for Recurring Payments, incl. Overall, Pricing & Contract, Recurring Payment Types, General Features, and Expert Scores, April 2022
  • Top Payment Processors for Recurring Payments, incl. Pros, Cons, and Recurring Payment Features, April 2022 (1 of 3)
  • Top Payment Processors for Recurring Payments, incl. Pros, Cons, and Recurring Payment Features, April 2022 (2 of 3)
  • Top Payment Processors for Recurring Payments, incl. Pros, Cons, and Recurring Payment Features, April 2022 (3 of 3)

3.2. Canada

  • Share of Respondents Subscribing to a SVOD Service, in %, 2021

4. Europe

4.1. Regional

  • Number of SVOD Subscriptions, in millions, 2021 & 2027f
  • Number of SVOD Subscriptions, by Platforms, in millions, 2027f
  • SVOD Revenue, in USD billion, 2021 & 2027f
  • Number of SVOD Subscriptions, in millions, 2021 & 2027f
  • Share of Customers Who Spent More Money on a Category After Getting a Subscription, in %, Q1 2022
  • Share of Customers Who Reduced Time Spent on Usage of Similar Services After Getting a Subscription, in %, Q1 2022
  • Top Factors Motivating Customers’ Decision to Purchase Subscription, in % of Respondents, Q1 2022
  • Top Factors Motivating Customers to Switch to a New Subscription Provider, in % of Customers, Q1 2022
  • Top Barriers That Stop Customers From Buying Any Subscription, in % of Customers, Q1 2022

4.2. UK

  • Subscription Market Value, in GBP billion, 2021 & 2025f
  • Share of Households Who Signed Up to at Least One Subscription, in %, 2021 vs June 2022
  • Top Categories in Which Consumers Signed Up for a Subscription, in % of Consumers, 2021 vs 2022
  • Average Price That Online Shoppers are Willing to Pay for Subscription Services, by Product Categories & Price Levels, in % of Online Shoppers, August 2022
  • Top Reasons Why Online Shoppers Do Not Subscribe to Subscription Services, in % of Online Shoppers, August 2022
  • Breakdown of Online Shoppers Who Had to Cancel Their Subscription Services, in %, August 2022
  • Share of Consumers Who Cancelled At least One Subscription Due to Decrease in Disposable Income, in %, June 2022
  • Top Strategies of Subscription Providers to Combat Declining Subscriptions, in % of Subscription Providers, June 2022
  • Factors That Would Make Consumers More Likely to Sign Up to Subscriptions in the Future, in % of Respondents, June 2022
  • Number of Households Having Access SVOD Service, in millions, Q1 2022 vs Q2 2022

4.3. Germany

  • Share of SVOD Household Penetration, in %, Q1 2022
  • Share of Subscription Service Consumers Who Cancelled a Subscription to Make Way for a New One, in %, Q1 2022
  • Share of Consumers Who Chose a SVOD Subscription Mainly for Relaxation, in %, Q1 2022
  • Share of Households Having a SVOD Subscription, by Generation, in %, Q1 2022

4.4. France

  • Share of Respondents Who Plan to Maintain or Increase Their Subscriptions in the Next 12 Months, in %, May 2022
  • Share of Families Who Have Between 2 and 5 Subscriptions, in %, May 2022
  • Share of Families Who Increased Their Subscription Spending Last Year, in %, May 2022
  • Top Reasons For Respondents to Subscribe to Services, in % of Respondents, May 2022

4.5. Russia

  • Share of Respondents Having Either a Free Or Paid Subscription to Online Cinema, in % of Respondents, Q2 2021-Q2 2022
  • Breakdown of Attitudes Towards Subscription Among Online Shoppers, in % of Online Shoppers, November 2021
  • Share of Subscriptions Among Those With an Annual Income of More Than RUB 75 Thousand, in % of Respondents, November 2021

4.6. Turkey

  • Mobile Subscriber Penetration Rate, in % of Smartphone Users, 2021 & 2025f
  • Share of Customers Who Were Unaware of Subscriptions Until Given an Example of One, in %, Q1 2022

5. Asia-Pacific

5.1. Regional

  • SVOD Revenue, in USD billion, 2021 & 2027f
  • Number of SVOD Subscriptions, in millions, 2021 & 2027f

5.2. China

  • Share of SVOD Subscriptions, in % of Region’s Total Subscriptions, 2027f

5.3. India

  • Number of SVOD Subscriptions, in millions, 2021 & 2027f

5.4. Japan

  • Domestic Subscription Service Market Size, in JPY billion, and Year-on-Year Change, in %, 2020-2024f
  • SVOD Revenue, in USD billion, 2022e & 2027f
  • Monthly Average SVOD Revenue Per Unique SVOD Household, in USD, 2022e & 2027f

5.5. Australia

  • SVOD Revenue, in USD billion, 2021 & 2026f
  • Breakdown of Subscription Models Used by Online Shoppers, by Subscription Category, in % of Online Shoppers, August 2022
  • Share of Online Shoppers Holding Non-Traditional Subscriptions, in %, August 2022
  • Reasons Why Non-Subscribers Do Not Subscribe to a Service, in %, August 2022

6. Latin America

6.1. Regional

  • SVOD Revenue, in USD billion, 2021 & 2027f
  • Number of SVOD Subscriptions, in millions, 2021 & 2027f
  • SVOD Revenue, by Platform, in USD million, 2027f

6.2. Brazil

  • Share of Respondents Who Claim To Subscribe Or Have Already Subscribed to a Service For Watching Movies or Series Online, in %, April 2022
  • Share of Respondents Who Cancelled a Subscription To a Streaming Service, in %, April 2022

6.3. Mexico

  • Number of SVOD Subscriptions, in millions, Q1 2022 & Q2 2022
  • Breakdown of SVOD Subscription Share, in % of Total Users, Q2 2022
  • Breakdown of Payment Methods Used for SVOD Subscriptions, in % of Total Users, Q2 2022

7. Middle East & Africa

7.1. Regional

  • Number of Unique Mobile Subscribers, in millions, 2021 & 2025f
  • Mobile Subscriber Penetration Rate, in % of Smartphone Users, 2021 & 2025f
  • Mobile Subscriber Penetration Rate, in % of Smartphone Users, 2021 & 2025f
  • SVOD Revenues, in USD billion, 2021 & 2027f
  • Number of Paid SVOD Subscriptions, in millions, 2021 & 2027f

7.2. Iran

  • Mobile Subscriber Penetration Rate, in % of Smartphone Users, 2021 & 2025f

7.3. Israel

  • Mobile Subscriber Penetration Rate, in % of Smartphone Users, 2021 & 2025f
  • Netflix
  • Amazon Prime
  • Helcim
  • Disney
  • Square
  • PayPal
  • Stripe
  • Wave
  • Paramount
  • HBO
  • Apple TV

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