Digital subscriptions must offer flexibility and value
Digital subscriptions must offer flexibility and value
A new study shows what consumers are prioritizing most when shopping for subscriptions.
Reports of the demise of the subscription economy have been greatly exaggerated. Those are the key findings of a new study from Chargebee, which examined the behaviors of customers in the United States and the United Kingdom, and their feelings about subscription services. The data shows that while customers aren’t planning to slow down spending on subscriptions like streaming services, their need for value, transparency, and flexibility remains strong.
Key Details:
- Yeah, we noticed: Ninety percent of customers noticed a subscription price hike last year.
- Let me choose: Seventy percent of respondents say they are open to usage-based pricing models.
- Empowering viewers: Services that make it easier to pause or cancel subscriptions are better at attracting customers.
The data from Chargebee shows that 90% of customers of a subscription service — including streaming and other types of retail subscriptions — noticed a price increase from one of their services in the last year. Only 58% said they thought that price increase was justified, showing how sensitive shoppers are when they feel they aren’t being told clearly why prices are going up.
Disney streaming services were the latest to announce they were raising prices, and customers have frequently shown frustration with streamers precisely because they don’t feel streamers are offering a jump in content commensurate with the price hike. It’s an unfortunate pattern that doesn’t seem to show any signs of stopping as streaming services try to become respectable, profitable businesses in their own right.
Despite those numbers, 80% of subscription customers say they don’t plan to decrease discretionary spending. Eighty-five percent of consumers pay for at least one digital subscription or loyalty program, and 82% of subscription shoppers have a streaming service in their lineup.
Flexibility has become highly important for consumers. Sling TV's new Passes are a product that meets customers right where they are, according to Chargebee’s data; 70% of customers say they are open to usage-based pricing models similar to Sling TV Passes, which allow viewers to access the service’s programming for as little as $5 per day.
Having the ability to pause or cancel subscriptions easily is also key for consumers, 82% of whom say they’re more likely to subscribe to a service in the first place if leaving that service is an easy process. Seventy-eight percent say they prioritize services that offer options to pause or swap plans or tiers. Many streamers like DIRECTV and Sling TV are diversifying their offerings to allow customers more choice, and some streamers like Hulu allow you to pause an account instead of canceling.
“The subscription economy has matured, and consumers have raised the bar when it comes to how they want to pay,” Chargebee CMO Guy Marion said. “They want flexibility without friction, pricing that feels fair, and the option to leave without punishment. What this research makes clear is that when companies empower customers with transparency and control, they don’t lose them faster. They actually keep them longer.”
Sling TV
Sling TV is The Streamable’s choice for cord-cutters on a budget. Sling is a live TV streaming service with multiple channel packages. The $45.99/month Sling Orange plan offers about 30 channels, including Disney Channel and ESPN. The $45.99/month Sling Blue plan offers about 40 channels, including ABC, Fox, and NBC in major markets.
You can combine Orange+Blue for a total of $60.99 / month. Sling also offers many channel add-on packages starting at $6/month.