“Most entrepreneurial ideas will sound crazy, stupid, and uneconomic, and then they’ll turn out to be right.”
Reed Hastings, CEO, Netflix.
It is undeniable that the subscription economy has expanded by potentially billions of dollars, particularly since the COVID era. When we consider subscriptions, we don't simply mean online services but also tangible goods. There are subscriptions for OTT platforms like Disney+ Hotstar, Amazon Prime, and Netflix, for music streaming, fitness and professional learning courses too. Then there are subscriptions for physical products, such as pet food, skincare or even Kombucha.
Therefore, we must understand exactly what a subscription is before we get into the future of the subscription economy. Simply said, a Subscription is a process in which you can purchase physical or digital products/services like OTT services online by making regular or timely payments based on your preferences.
With subscriptions entering every sphere of our customer journey, there’s a need to bring everything under one roof. Fleek is one such app that reduces the hassle of managing and tracking subscriptions and provides great deals and discounts on subscriptions. That is one way to demonstrate that the subscription economy has definitely stepped up its game when it comes to making it more user-friendly.
And what advantages can a subscription offer us?
There are already enough reasons to fall in love with the subscription economy, such as the fact that you don't have to leave the house to watch a movie or pick up groceries when you can have them delivered to you regularly. The benefits of subscriptions have unquestionably improved life recently. When it comes to customer satisfaction, a few subscription benefits stand out: they save you money, time and also give you a variety of options for you to select from. They also facilitate timely payments and auto-debit renewals, allowing for easy payments and cancellations. That being said, when looking at a business model, they allow for an even relationship with other consumers, better conversion, and increased customer satisfaction and retention.
And how exactly will subscriptions look in the future?
The subscription industry has undoubtedly benefited from the pandemic. Both the OTT sector and physical products have reaped the benefits. The hope for the future is unquestionably upward, and all of these OTT and digital product moguls have undoubtedly benefited from the pandemic and produced nearly billions. And people have grown accustomed to the subscription life today in a variety of sectors, not only entertainment. The projected 5.2% growth in 2024 seems realistic and achievable, but as always, only time will tell.
“The moment you make a mistake in pricing, you're eating into your reputation or your profits.” - Katharine Paine
Because pricing is so important in every market, the aforementioned quote is correct in many cases. Clients will be interested in purchasing or acquiring the product only if the price point matches their preferences and budget. Following a thorough examination, the OTT sector undoubtedly updated and amended its ideas to make them more pocket-friendly. Which is another factor keeping subscriptions' future certain.
Price, without a doubt, has a significant impact, and if corporations want individuals to invest a portion of their hard-earned money into their subscription, careful pricing modification is required. Because it could be argued that paying more than a thousand rupees for a platform is pointless when we can simply watch the same movie in a theater. The main advantage is that, depending on the subscription plan, you get a full package that lasts about a year and not just a one-time watch or limited choices.
When it comes to conveying a generic price point for Tier 2 and Tier 3 cities, there is a challenge. Because finding the right kind of audience is one thing, but catering to another audience and having a lower subscription fee only for them is another. However, as previously stated, the OTT industry must focus solely on their game and provide a reasonable and valuable price to every segment of society without tampering with their revenue. And that’s a fine line to tread.
It has also provided a great deal of flexibility for consumers, which is an important factor that no one can deny. The OTT industry will definitely up its game in time to only deliver the best kind of benefit for today's audiences for better customer delight and also to convert better ROI.
“Subscriptions are the only business model that is entirely based on the happiness of your customers.”
Tien Tzuo
Leaving you with enough food for thought and hope that the subscription industry ups their game to greater heights in the coming years.
