To address the growing convenience and customization desires, subscription services, found in both retail and media markets are becoming increasingly sought-after.
Media subscription services have been popular for much longer than their retail counterparts. These services consist of music and movie or TV streaming. Over half of Americans (55 percent) have a paid movie or TV streaming service, such as Netflix or Hulu. Music streaming makes up 60 percent of consumed music. Spotify, Youtube and Apple music make up the most popular of these services.
Anna Griffin, 2019 graduate, believes media streaming services serve as a staple for students. “I would describe them [media streaming services] as very popular because they are so accessible,” she said. “We are able to watch Netflix and use Spotify on our phones wherever we’re at, as long as there’s a signal.”
However, media streaming isn’t the only monthly payment that many consumers are making. Fifteen percent of online shoppers subscribe to a subscription retail service. Additionally, these retail subscription services are growing astronomically; the market started at 57 million in 2011 and grew to 2.6 billion in 2016, a 400 percent increase.
Consumers are quickly realizing the benefits of these services, as 35 percent of those with a subscription have three or more. A survey from McKinsey and Company also studied gender differences in subscriptions. “Male shoppers are more likely than women to have three or more active subscriptions—42 percent versus 28 percent, respectively—suggesting that men particularly value automated purchasing and the ability to limit store trips.”
In the survey, consumers responded that personalization, recommendations from friends and convenience are the most popular reasons for starting these subscriptions.
Junior Sarah Babka uses HelloFresh, a food delivery service that provides food and recipes for customers to cook. “It [Hello Fresh] is easier because it sends everything to your door and keeps you from having to come up with different things to have for dinner,” she said.
Currently, the most popular services are Amazon Subscribe and Save, Dollar Shave Club, Ipsy, Blue Apron and Birchbox. They deliver a wide variety of products, including razors, beauty products and food.
As the subscription service market continues to grow, consumers will take advantage of the convenience and discounts they bring. From delivering clothing, music, movies and snacks, subscription services are here to stay.
