The problem with this model is that there are now too many subscriptions to choose from, and they all start to add up over time. The concept of subscription fatigue is creeping in, and businesses may need to rethink how they deliver value in the future. This could lead to a new era of subscription models, with companies potentially collaborating to offer bundled packages.
The Subscription Overload Problem
When subscriptions first came about, they felt like incredible value for money. Netflix burst onto the scene, and gave people access to a massive library of films and television shows on demand for the first time ever, at a relatively low monthly cost. Prior to this, people had rented or bought individual films for a similar price to a subscription fee. At the time, it was amazing value.
Now, though, the problem is the fact that there are countless subscription services all competing for the same customers. Netflix is joined by other giants like HBO Max, Disney+, and Amazon Prime Video, all of which have great shows and films that people want to watch. Many viewers find it too costly to subscribe to them all, so they will often switch between them on a month-by-month basis so they can see all the top shows.
For some people, subscriptions now feel like too much of a burden, as there are so many to juggle. There’s no longer a feeling of choice and discovery, and businesses may need to do something to address this and find a new way to offer value.
Value-Driven Promotions Still Reign Supreme
In some sectors, the subscription model hasn’t taken hold, and they use classic promotions to drive custom. This is seen most prominently in the online casino sector, where the traditional casino sign up bonus still reigns supreme. Players can get access to deposit match bonuses and free spins when they sign up, allowing them to test out a site without spending any of their own money at first.
In retail, many ecommerce stores still prefer to provide similar incentives rather than jump on the subscription model. These include flash sales, with companies like Abercrombie & Fitch offering 50 percent discounts over a two day period. Well-timed promotions like these can potentially outperform subscriptions, as they offer variety and relevance to customers.
With people able to get access to such impeccable money-saving offers, companies that offer subscriptions need to do more to make people think they’re worthwhile. Instead of offering subscription discounts, though, one approach could be for different services to team up and offer combined subscriptions. For example, Netflix and Spotify could strike a partnership that allows people to pay one subscription for both platforms.
The subscription model has worked well up until now. However, with users spoiled for choice, a shift in approach is needed. Instead of having countless subscriptions for different things, combined packages that span various platforms may be the way forward.
