Landmark study on subscription and membership
services provides insights into how service providers
can better capitalize on growing service market
DALLAS, May 14, 2024
/PRNewswire/ -- Parks Associates research sees a continued
wave of subscription service uptake among US households, led by
streaming video, retail memberships, and streaming audio, while 20%
of households have a gaming subscription, outpacing gym
memberships. Parks Associates recently released a new consumer
study of 8,000 US internet households, Subscription
Memberships and Bundling: Shopping, Video, Gaming,
Mobile. The study tracks household adoption of
membership and subscription programs and the rise of bundles among
various services with different value propositions centered around
lifestyle, entertainment, technology, and productivity.
The research finds that streaming entertainment services set the
pace for the subscription economy. Currently, 89% of households
have a streaming video service, and 32% subscribe to a streaming
audio service. One in five internet households subscribe to a
gaming service, while 16% have a gym membership.
"The evolution of hardware to a service model and demand to
drive engagement and loyalty for brands through apps are driving
the rise of subscription services," said Jennifer Kent, Vice President, Research, Parks
Associates. "On the streaming audio side, market leader Spotify's
premium adoption is as high as that of Discovery+, the ninth
highest video OTT subscription service."
Beyond video, retail, and transportation, many categories see
large jumps in adoption once household annual income passes
$100,000, while many subscription
categories see adoption drop-offs after age 45. These households
can absorb the high prices for gaming and fitness services, and
they prioritize convenience over cost (meal kits, kid/baby
subscriptions, delivery service memberships), which adds emphasis
to the user experience.
Categories that provide entertainment (music, gaming) and
convenience (child/baby, meal service) fare particularly well in
terms of customer loyalty. Most categories achieved positive NPS
(20+), with even high-priced services (gaming, meal kits) receiving
high marks. Internet and traditional pay-TV providers, which
traditionally have subpar NPS, can benefit from partnering with –
or bundling in – services that garner higher customer satisfaction
and loyalty.
"Competitive pressure will force market challengers to forge
stronger ties, e.g., Walmart Plus and Paramount Plus. Subscription
bundlers should seek offerings that span entertainment,
productivity, and convenience," Kent said.
The research is available for purchase and part of Parks
Associates' library of consumer and industry research. 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, Twitter, Facebook, and
Instagram.
Mindi Sue
Sternblitz-Rubenstein
Parks Associates
972.490.1113
377689@email4pr.com
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SOURCE Parks Associates