Subscription-based business models are known for their recurring fee structure. This can be convenient for users so they don’t have to constantly buy new goods and services- instead, they can set up autopayments that give them consistent access. Subscriptions have become so popular within the United States that there are currently 61 million subscribers using some form of the 225 million subscriptions available on the market. This momentum doesn’t appear to be slowing, as subscription-based businesses are growing 3.7 times faster than businesses in the S&P 500.
There are two primary categories for subscription services: direct-to-consumer (DTC) and business-to-business (B2B). DTC, in particular, has gained immense popularity, offering 27,000 services that cut out middlemen that drive up the cost of goods. These subscriptions encompass membership/access, curated, and replenishment services. There are many recognizable companies that fall under a subscription structure, including Amazon Prime, Sam’s Club, and Dollar Shave Club.
Subscription preferences vary by state, with TV streaming services being the top choice in six states and security services in five. The diversity of available services is impressive, encompassing everything from makeup to music streaming and video games. There are even some very innovative services currently entering the market, such as monthly houseplant deliveries and printing toner subscriptions.