Twenty-eighth annual CONNECTIONS™ Conference addresses rise
of subscription and membership services in the home
DALLAS, May 1, 2024
/PRNewswire/ -- Parks Associates' new consumer study of 8,000
US internet households, Subscription Memberships and Bundles:
Shopping, Video, Gaming, Mobile, reveals 77% of US internet
households participate in free loyalty programs, led by
high-transaction providers such as grocery stores (45%) and credit
cards (42%). This landmark study of the subscription economy
explores current adoption of membership and subscription programs
and opportunities to leverage these preexisting relationships to
create new bundles and paid services.
Companies throughout the connected home ecosystem are pursuing
opportunities to secure recurring revenues. Parks Associates will
explore these strategies at its upcoming CONNECTIONS™: The Premier
Connected Home Conference, May 7-9 at
the Hilton Dallas/Plano Granite Park
Hotel in Plano, TX. The conference
features the session "Willingness to Pay for Connected Home
Services," May 8 at 10:15 am, where speakers from Comcast, Daisy, and
Shipshape AI explore successful pricing models and strategies to
monetize subscription-based services.
"Entertainment, convenience, resources, and discount/value are
primary value propositions for subscription and membership
services," said Elizabeth Parks,
President and CMO, Parks Associates. "Many services offer a
combination of value propositions – the right mix of benefits will
depend on the customer target. We will continue to see consumer
service providers partner and bundle various services to add value
and stickiness to their offering."
Almost all US internet households have at least one digital
subscription. OTT video streaming services are the leading digital
services and account for the highest average spend and the highest
number of services used per household. Free loyalty programs can be
an onramp to paid memberships. For example, Best Buy's loyalty
program started as a free reward service, and the retailer
gradually built it up to a tiered membership program with My Best
Buy Plus and My Best Buy Total. Target will be the next retailer to
migrate from a free to paid membership program with Circle 360.
Creation and expansion of membership programs also creates
opportunities for aggregators – e.g., broadband providers, cellular
carriers, TV portals, and app stores – to expand their offerings
and compete with other aggregators. For instance, in March 2024, Google added Fitbit Premium and Nest
Aware to Google One plans for UK subscribers.
"Subscription providers should seek partnerships with
aggregators to expand the reach of their brand beyond their own
users," Parks said. "We will see many new, unique, and creative
membership opportunities from a variety of different players in
2024."
To schedule an interview with an analyst or to request specific
data, please contact Mindi Sue
Sternblitz-Rubenstein at
mindi.sue@parksassociates.com or 972-490-1113.
About Parks Associates
Parks Associates, a
woman-founded and certified business, is an internationally
recognized market research and consulting company specializing in
emerging consumer technology products and services. Founded in
1986, Parks Associates provides business intelligence and research
services through its proprietary methodologies developed over
decades, including quarterly surveys of 10,000 internet
households.
The company's expertise crosses many industries: home security
and smart home, streaming video, broadband and pay-TV services,
digital media and platforms, gaming, Wi-Fi and home networks,
connected health, support, consumer electronics, home control
systems, energy management, and tech solutions for the
multi-dwelling (MDU), small-to-medium business (SMB), and
commercial building markets.
Each year, Parks Associates brings thousands of leaders together
for its webinars and annual events. The firm hosts the annual
executive research and strategy conferences CONNECTIONS™, Connected
Health Summit, Smart Energy Summit, Smart Spaces, and Future of
Video. https://www.parksassociates.com
Follow Parks Associates on LinkedIn, Facebook, and
Instagram.
Contact:
Mindi Sue Sternblitz-Rubenstein
Parks Associates
972.490.1113
377043@email4pr.com
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SOURCE Parks Associates