The Rise of Recurring Revenues
The subscription economy is growing and evolving at unprecedented speed. It is also becoming increasingly competitive, with more and more innovative businesses choosing to adopt a subscription model.
By 2025, the global size of the subscription economy will hit $1.5 trillion by 2025 after doubling from $650 billion in less than five years, according to a forecast from UBS1.
Gartner has also predicted that 75% of direct-to-consumer organisations will be offering subscriptions by the end of this year.
“Everything from socks to video games can be now sold on a recurring and automatically renewing basis,” the analyst house wrote. “Organizations can benefit from subscription commerce with repeatable and predictable revenue; customers like the convenience, cost savings and personalized curation.”
Gartner’s prediction also contains a warning: just 20% of companies will successfully improve customer retention rate. If you want to be among the leading fifth of businesses, which means you’ll need to understand as much as you can about how to manage subscribers and recurring revenues.
In this hugely diverse sector, all unique subscription-based businesses will face a similar set of challenges and considerations. In this report, we will explore what you need to know to navigate the subscription landscape, unlock the potential of recurring revenues and maximize the potential of your business.
Competitive Landscape Analysis: Are Subscription Businesses Resilient?
Although the cost-of-living crisis is affecting consumer demand for subscriptions, there is clear evidence that the sector is not only surviving but thriving in difficult market conditions.
In the early 2000s, digital subscriptions started gaining traction as a strategic tool for businesses in various industries. The Covid pandemic then accelerated acquisition growth, fueling consumer interest in subscriptions. However, we are now entering a new phase, which is known as “the retention phase”.
FT Strategies, a consultancy group launched by the Financial Times, reported observing “a pancaking effect” as the rapid growth seen during the lockdown era flattens due to economic challenges and cost of living pressures.
Explore the Possibilities
Our comprehensive report introduces you to the endless opportunities in the Middle East's thriving Subscription Economy. Discover how to leverage recurring revenues, deepen customer relationships, and navigate the dynamic landscape of subscriptions in the region.