Digital Subscription Market

The global digital subscription market size was valued at USD 928.42 Billion in 2022, and is anticipated to reach USD 4613.77 Billion by 2031, at a CAGR of 19.5% during the forecast period, 2023-2031. The growth of the market is attributed to the wide acceptance of digitalization across industries, cost-effective digital services, and easy access to various exclusive entertainment programs.

Digital subscription, also known as electronic subscription, refers to a software service for which an individual user or a company has to pay a fixed amount of fees to avail that particular software or services using their smart electronic devices. Through the subscription, a consumer with the help of the Internet can easily access to a particular service for a certain period of time, which is particularly categorized as monthly, quarterly, and annually.

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Netflix subscription, which has the biggest subscription service with 221.8 million global paid subscribers till the end of 2021, offer various exclusive streaming service or content for entertainment and wide library of premier original programming for various time periods. Additionally, the cost-effective factor plays a vital role for the rapid expansion of the market.

As per a report by the American Press Institute, based on a survey of 98 US news organizations, the average price for a digital subscription was USD 3.11 per week, a metered paywall model averaging cost to USD 2.97, averaged freemium models was USD 3.52, and some averaged hard paywall model cost to USD 4.43.

Ranging from a mobile application to a web-based online platforms, different types of subscription services are available for different purposes such as image and videos editing, finance & accounting programming, and customer relationship management. Although digital subscription services had been mainly associated with marketing and sales, the services are increasingly adopted across several industries including banking, retail, and travel.

Through the services, users can improve their management network, enhance workflow, and help in developing innovative marketing strategies within a short period of time. Based on the subscription programs; auto-ship, curated box, and access are the three key categorized for users to choose and explore their experience for various services.

The COVID-19 pandemic had generated key opportunities for the massive expansion of the market due to rising demand for subscription service among households as members had to stay inside their home 24/7, impacted by the movement restriction imposed by governments.

Temporary shutdown of theatre and other entertainment spaces along with the emergency closure of malls have resulted in the rapid access to subscription services that facilitate a variety of entertainment programs and easy process for online shopping for consumers.

Digital Subscription Market Trends, Drivers, Restraints, and Opportunities

• Easy accessibility of service providers’ website and unique experience for consumers on ad-free content service of online platforms present key drivers of the market.
• User-friendly system for watching movies online, online shopping, and gaming & videos act as key factors boosting the market.
• Rapid expansion of ecommerce platforms and wide acceptance of online transaction for payment methods are expected to propel the market during the forecast period.
• Concerning issues of users’ data breach and lack of ability to proper management of services among various enterprises across industries are major hurdles that can hamper the market expansion.
• Technological advancement that allow to develop innovative mobile apps and rapid entry of new players are offering several growth opportunities of the market.

Scope of Digital Subscription Market Report

The report on the global digital subscription market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Digital Subscription Market Segment Insights

Applications Segment Analysis

Based on applications, the global digital subscription market is bifurcated into household level and institutional level. The household level segment is expected to account for a large market share during the forecast period owing to increasing average number of subscriptions per household and individuals.

Factors such as rising disposable income, changing lifestyle, and increasing spending on entertainment sector among a large number of the population worldwide are key drivers of the segment. On the other hand, the institutional level segment is anticipated to hold a key share of the market in the coming years owing to wide use of the subscription system of academic journals and newspaper’s web content among educational institutions such as universities.

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Industries Segment Analysis

On the basis of industries, the market is segregated into banking, retail & consumers, media & entertainment, travel & tourism, and publishing. The media & entertainment segment is projected to dominate the market during the forecast period since the rising popularity of Amazon Prime, Netflix, and other online subscription platforms that offer access to a vast pool of entertainment programs such as movies and web series.

On the other hand, the retail & consumers segment is anticipated to register a high growth rate during the targeted period owing to the expansion of ecommerce, wide adoption of advanced third party apps to ensure smooth function of retail service, and provide effective consumer relationship management.

Regional Analysis

In terms of regions, the global digital subscription market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe and North America are two major regions dominating the market and they both are likely to represent a large market share of the market in the coming years.

Early acceptance of digitalization and advanced digital services along with the wide establishment of a chain of world-class universities and educational institutions present main factors boosting the markets of these two regions.

On the other hand, Asia Pacific is a fast-growing region and the regional market is expected to constitute a key share of the market during the projected period owing to increasing awareness of digital subscription process of various online services and platforms. Additionally, the rising number of young adults using smart devices for video streaming and gaming further push the market expansion in the region.

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Segments

The global digital subscription market has been segmented on the basis of

Applications

• Household Level
• Institutional Level

Industries

• Banking
• Retail & Consumers
• Media & Entertainment
• Travel & Tourism
• Publishing

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Netflix
• Amazon
• Flipkart
• Microsoft Corporation
• Salesforce
• Oracle Corporation
• TechCrunch
• SAP SE
• Vigorate Digital Solutions
• Algolia

Competitive Landscape

Key players competing in the global digital subscription market are Netflix; Amazon; Flipkart; Microsoft Corporation; Salesforce; Oracle Corporation; TechCrunch; SAP SE; Vigorate Digital Solutions; and Algolia.

Some of these player have adopted various business development strategies such as merger or acquisition, partnership or collaboration, and launching new subscription systems to expand their consumer base globally and gain a competitive edge in the market.

Google Workspace, HubSpot, Adobe, and Slack are some of the key platforms that offer subscription models for users or enterprises who can access to innovative software for their effective management of business operations.

A digital-born subscription-based French news platform, MediaPart is home to 67 million people in France and has more than 170k subscribers who are paying €11m/month, thereby, generating €16.6 million in revenues with 20% operating margin.