In the post-pandemic era, subscription fatigue has become an increasingly prevalent issue for businesses to address. In a world where subscription revenue models are being introduced to, well, everything — from your typical streaming services and meal kits to cruise control and climate control features in Audis — it makes sense that consumers are frustrated and overwhelmed when determining which subscriptions are truly necessary.
The subscription revenue model grew significantly during the COVID-19 pandemic and for several years afterwards. But now, industry leaders and analysts believe that this era of unprecedented growth is nearing its end. According to research firm YouGov’s Justin Marshall:
“Unsubscribing rates were high last year — and there’s a looming threat of even more … the proportion of people who plan to cancel in the future sits at a concerning 8 points above the figure of cancellations in the past year.”
A Civic Science survey of video service subscribers found that 50% of respondents either cancelled or intended to cancel one or more subscriptions in 2023 due to subscription fatigue.
Consumer discontent regarding the widespread use of subscription revenue models has even reached the White House, with the Biden-Harris administration recently announcing new proposals to make cancelling subscriptions easier.
The point here is simple: people are getting tired of subscriptions! So why do consumers feel this way, and how can businesses adapt to mitigate subscription fatigue?
Consumers are feeling subscription fatigue for numerous reasons, including:
While people are becoming increasingly fatigued with subscriptions, businesses are experimenting with different ways to keep consumers subscribed and engaged. Specifically in the publishing industry, The New York Times and The Forward serve as two examples of publishers that have adapted successfully to this new era using very different strategies.
Case 1: The New York Times
During 2023, The New York Times was able to push its annual revenue for digital subscriptions above $1 billion for the first time by bundling its core news product with other digital components such as Wirecutter, its product review site, or The Athletic, its sports news site. Recognizing the broad appeal of non-news products, The Times has attracted swaths of new subscribers by offering high-value bundles at affordable discounted rates.
Here at AdvantageCS, our Advantage subscription management software allows businesses to bundle various print, digital and product items together in the same way. Click here to learn more about our flexible subscription management software!
Case 2: The Forward
In December 2023, four years after the publication’s transition to digital-only, the Forward decided to remove its paywall to move to a donation and gift-based revenue model. This move was a great success — from December 2023 to March 2024, the Forward received nearly $583k in donations under $5k — a 37% increase over total paid subscription revenue during the same time from the previous year! By recognizing both the widespread demand for high-quality information and consumer willingness to pay for it, the Forward is able to succeed as a free, digital-only news publication while offering donors special perks and access.
Even though the staff drastically changed the business’ core revenue model, the Forward still needed a CRM to manage donations, track donor information and grant special access accordingly. Advantage is a flexible subscription management platform that has all of these capabilities and more! We offer effective subscription management features centered around customer retention including discounting options, loyalty programs and customer communications (to name a few examples). Click here to learn more!
In the subscription management industry, it’s becoming increasingly clear that the COVID-19 era of unprecedented subscription growth is nearing its end. Subscription fatigue is becoming more and more prevalent among consumers for a myriad of reasons. People are increasingly disciplined when choosing which subscriptions to keep or cancel.
At AdvantageCS, we recognize that businesses need to utilize different subscription models and marketing strategies to adapt their offerings to match consumer demands. The Advantage subscription management platform provides businesses with the flexibility they need to cater their product offerings for their niche.
Contact us today to find out what we can do to help your organization combat subscription fatigue!