Subscription services are everywhere, with growth coming from wealthier generations who want convenience, quality and freedom. Subscribing creates a wider range of choices, which is why customers everywhere are embracing the concept and happily spending more as they grow comfortable with the new services and brands.
Lets look at some industries and see how subscriptions are revolutionizing the marketplace:
Freedom Supercars pioneered the automotive Subscription model in the United States in 2009, disrupting the market. Realizing that the market is shifting to a new audience that wants something more convenient, interchangeable, and flexible to their wants and needs, freedom supercars provides flexible membership plans that give members access to ALL the vehicles, not just one. By the year 2025, the subscription based car market is estimated to be compiled of 16 million cars, which is 10% of vehicle sales and an estimated to be worth 100 billion. Freedom Supercars complies a small piece of that market, being the only company to provide the best in luxury and exotic supercars with poised growth over the next 10 years to be in 30 markets.
You used to buy your records, tapes, and CD's - now that is all a way of the past. Now you are using bluetooth to stream all of your favorite music. Some of the most popular music companies like Apple Music, Pandora, and Spotify all provide music subscription services. You don't buy your music anymore. You pay to have access to listen to ALL the music you want, when you want. Streaming services now account for 75% of music industry revenue while digital downloads only acount for 12% and physical only accounts for 10%! It's clear to see,
Source: The Verge
If you wanted to fly private, the only way you could do that would be to buy your own private Jet, costing you millions. With factors such as Increasing costs, scheduled maintenance, the need to fly at least 400 hours a year to make it cost-efficient, more private flyers will opt for membership programs, a leading factor why the private jet industry is steadily growing.
Just the other day, we were walking into the store, picking up the VHS, DVD's, and Blue Rays. Now, most families don't even own a single movie in their house. Why? It's because of the popularity of streaming services such as Netflix, Hulu, Prime Video and other on demand streaming services that you have a membership to and get access to watch ALL the shows, movies, and content they provide. In 2017, disc sales made up 23% of the market while Video on Demand and Subscription Services made up 57% of the market. As smart TV's become more and more popular, they gain popularity as well.
The luxury vacation home industry is changing as well. Before if you wanted to have a second home, you would buy it in your favorite location, spend a few weekends or months there per year and then have it sit vacant the rest of the time. Now with membership subscriptions, you are able to choose from a wide variety of vacation homes, stay there for a fraction of the cost, and travel between tons of great locations instead of just one.
Ever heard of SaaS? Software-as-a-service is what it stands for, and in the industry it is predicted that 80%+ of companies will offer their software as a subscription service. There are many benefits to this such as security, cloud based backups, greater features, getting updates to market faster, and other benefits. It is no doubt that in the last 5 years we have seen a huge trend towards this, and it is here to stay.