Delivering on subscription services
Movies and music. Clothing and snacks. Car rentals and household items. It seems like no product or service has been untouched by the convenience of subscription services. They have disrupted everything from media consumption (remember video rental stores?) and vehicle ownership (thanks to car sharing services), through to meal preparation (boxed meal delivery) and personal shopping (monthly razor shipments). And that’s just the tip of the iceberg.
Subscription services have gone so far as to spur movements across the United States. Take cord cutting, for example. As consumers look for ways to lower monthly bills, many have turned to subscription-based streaming entertainment they would otherwise receive from their local cable provider. Research suggests that while the majority Americans have not yet cut the cord, they are subscribing to streaming media in droves. With Netflix posting its highest-ever subscriber growth at the end of 2016, it seems that this dynamic is likely to evolve rapidly in the near future.
Given the quickly-changing landscape of subscription services, Vantiv and Socratic Technologies conducted a survey of over 1,000 consumers to get a better understanding of who’s subscribing to subscription services and which types are most popular. Here are the results.
The majority of respondents subscribe to something
79% of respondents have an active subscription to a product or service.
Millennials are paving the way
92% of Millennials have active subscriptions. Compare this with Retirees, who come in last at 70%.
Respondents are more likely to subscribe to a service
75% of respondents subscribe to a service. The most popular types of service subscriptions are newspapers/magazines (41%), online video services (39%), gym memberships (23%), music services (21%), and online data storage (15%).
Product subscriptions have some catching up to do
Only 37% of respondents subscribe to a product. The most popular types of product subscriptions are personal grooming (15%), household items (13%), personal health (12%), pet supplies (12%), and food items (12%).
How are people paying for their subscriptions?
The majority of respondents pay for their subscriptions monthly (54%) and with a credit card (52%). In addition, most believe they can cancel anytime (60%).
Consumers who do not currently subscribe to anything have little interest in future subscriptions
77% of non-subscribers plan to stay that way. Those who are interested in future subscriptions would choose practical items like household items and pet supplies, or they would subscribe to newspapers or magazines.
Online video subscriptions appeal to all generations
Millennials subscribe to online video services most frequently (60%), followed by Gen Xers at 47%. Baby boomers are third at 28% and Retirees come in last at 20%.
Netflix is the most popular online video subscription
70% of respondents subscribe to Netflix, followed by Amazon Instant Video (39%) and Hulu Plus (23%).
Most respondents have not yet purchased subscriptions as gifts
Only 35% of respondents have done so. Millennials are the generation that’s most likely to have purchased a gift subscription at 61%.
Men are more likely to have a subscription
41% of men (versus 31% of women) currently have a product subscription. 81% of men (versus 67% of women) currently have a service subscription.
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