Subscription Economy Growth Stats Across Industries

Explore key data on subscription economy growth across SaaS, DTC, media, and more. See which sectors are scaling fastest.

The subscription model is no longer a niche. It’s mainstream. From software and entertainment to groceries and education, industries across the board are adopting subscription-based pricing—and growing fast. But how deep does this trend run? In this article, we break down 30 of the most important stats that show just how far the subscription economy has come. Each stat tells a story. And we’ll not only explain the numbers but also what they mean for you—and how you can use them to grow your own business.

1. The subscription economy has grown over 435% over the past decade, outpacing S&P 500 revenue growth by 5x

What This Growth Really Means

A 435% growth rate is staggering. It shows that subscription businesses are not only thriving—they’re dominating. When compared to traditional companies on the S&P 500, subscription companies are growing five times faster in revenue. That’s not a coincidence. It’s a signal that the market wants consistency, value, and long-term relationships.

Why Subscriptions Outperform

Subscriptions offer predictable revenue. They build loyalty. And they reduce reliance on one-time purchases. When done right, they create a flywheel of value: better customer insights → better offers → higher retention → more upsell opportunities.

How You Can Apply This

If you’re still selling in a one-time transaction model, it’s time to rethink. Whether you’re in software, media, or physical goods, consider how to turn your offer into a recurring one. Start small:

  • Offer a subscription tier for premium services.
  • Build bundles people want monthly.
  • Add exclusivity (content, perks, or support).

Watch Out For

Don’t overpromise. Many early-stage subscription models fail because they focus too much on acquisition and ignore retention. You need to deliver continuous value—every month, without fail.

 

 

2. 78% of international adults currently have subscription services, with an average of 5 per user

Subscriptions Are Now a Global Habit

Almost 8 in 10 adults globally pay for at least one subscription. And on average, they’re managing five. That tells us something critical: people are comfortable paying on a recurring basis. They even prefer it.

Why This Matters for You

This stat shows mass adoption. It’s not just the U.S. or tech-savvy audiences. Subscriptions are part of daily life in Europe, Asia, Latin America, and beyond. From streaming to razors to fitness—people are used to subscriptions.

What You Should Do

You don’t need to reinvent the wheel. The behavior is already there. Your job is to position your product as a “must-have” on the monthly list.

  • Make it affordable, but indispensable.
  • Create real convenience.
  • Offer flexibility in canceling and restarting.

Tactical Advice

Design your onboarding experience to reduce friction. Assume the customer is already subscribed to other services—they don’t want another hassle. Keep pricing transparent and offer trial periods to build trust.

3. In SaaS, 91% of B2B software companies use a subscription pricing model

Subscription Is the Default in B2B Software

It’s not just popular—it’s the standard. Most SaaS businesses today aren’t asking if they should use subscriptions. They’re asking how best to structure them. That’s a clear sign: the market expects recurring payments.

Why This Works

For software, subscription pricing makes sense. It reflects continuous updates, ongoing support, and evolving features. It also aligns with customer budgets—monthly or annual payments instead of big upfront costs.

For Founders and Teams

If you’re building a SaaS product today, you should already be thinking:

  • What’s my monthly vs annual value prop?
  • Where can I create pricing tiers that scale with usage or features?
  • How can I reduce churn with better onboarding and support?

Use This Insight

Instead of selling access, sell outcomes. Think of your pricing page as a storytelling tool. Help users see how you’ll save them time, money, or hassle over the long haul. That’s what makes subscriptions sticky.

4. The media and entertainment sector sees 84% of digital revenue come from subscriptions

People Pay for Content—When It’s Worth It

We used to think content should be free. But now, nearly all digital revenue in media and entertainment comes from subscriptions. Whether it’s Netflix, Spotify, or Substack—users are showing they’ll pay for quality and convenience.

What Changed?

It’s not just access to content—it’s how it’s delivered. Easy-to-use apps, offline options, personalized feeds—all of that enhances the value.

What You Can Learn

Whether you’re creating written, audio, or video content, you need to think about:

  • Niching down. Don’t be everything to everyone.
  • Offering exclusive, not just premium, material.
  • Delivering consistently—same time, same quality.

Bonus Tip

If you’re a creator or publisher, think beyond content. Add community, early access, or live events. People stay subscribed when there’s more than just consumption—they want connection.

5. 65% of digital publishers derive over half their revenue from subscriptions

Publishers Are Shifting Models

Ad revenue is unreliable. That’s why nearly two-thirds of digital publishers now get most of their money from subscribers. It’s more stable. And it builds a deeper relationship with readers.

Actionable Advice

If you publish regularly—newsletters, reports, blogs—you can monetize. But it requires structure.

  • Set a paywall strategy (metered, hard, freemium).
  • Focus on a strong “value hook” in your free content.
  • Create pricing that feels like a no-brainer.

Retention Tactics

The hardest part is keeping subscribers. Publish exclusive insights, invite feedback, and constantly survey what your readers want next. Make them feel like members, not customers.

6. In consumer goods, 15% of U.S. eCommerce sales are now subscription-based

A Surprising Shift in Retail

This isn’t just about software or content. Physical product subscriptions—like razors, snacks, vitamins, or skincare—now make up 15% of online sales. That’s a huge slice for a relatively new model.

Why This Matters

Shoppers are choosing convenience. And they like not having to reorder the same things every month. The subscription model removes friction and builds habit.

How to Tap Into It

If you sell consumer goods:

  • Make it easy to start a subscription at checkout.
  • Offer small discounts or perks for subscribers.
  • Use smart refill logic (e.g. send new product before they run out).

Be Careful

Poor customer support or rigid cancellation policies lead to churn. Make sure your logistics and operations are as solid as your marketing.

7. Subscription video on demand (SVOD) market revenue is projected to reach 139 billion dollars by 2027

Streaming Is Leading the Pack

SVOD has become one of the fastest-growing segments in the entire subscription economy. With revenue expected to hit 139 billion dollars by 2027, it’s clear that people are willing to pay for curated, on-demand entertainment.

Why the Growth?

There are a few key reasons:

  • Personalization of content
  • Convenience of anytime viewing
  • The rise of mobile-first users

But what really drives SVOD success is its ability to blend content, tech, and data to keep viewers hooked.

What This Means for Other Industries

Even if you’re not in media, you can learn from SVOD strategies:

  • Curate your offering. People want fewer choices, not more.
  • Make onboarding frictionless. Think of your signup flow like Netflix’s—fast and clear.
  • Use data to personalize experiences. Tailor product recommendations, emails, and content based on behavior.

Opportunity Areas

If you’re in education, fitness, or niche content—SVOD-style delivery could be your growth engine. On-demand classes, courses, or webinars can mimic streaming experiences and open up new recurring revenue streams.

8. Health and wellness subscription services saw a 142% increase in subscribers between 2019 and 2023

Health Is Now a Monthly Habit

People don’t just visit the gym anymore. They subscribe to wellness. This includes meditation apps, fitness programs, supplement boxes, and even personalized health coaching. Between 2019 and 2023, this space saw a 142% increase in subscribers.

What Drove This?

The pandemic changed behavior. People wanted solutions they could access from home. They also started investing more in self-care, physical and mental.

How to Use This in Your Business

If you’re in health, wellness, or lifestyle products:

  • Create a “monthly path” to health goals (e.g. a plan, product bundle, or digital guide).
  • Don’t sell a product—sell progress.
  • Build in accountability—emails, mobile reminders, or community.

Keep in Mind

People unsubscribe when they don’t see results. So be crystal clear on how your subscription delivers change. Track outcomes and show progress month by month.

9. 79% of consumers believe subscription models are more convenient than traditional purchasing

Convenience Is the Winning Feature

Nearly 4 out of 5 consumers say subscriptions are easier than traditional shopping. That tells you something important—convenience is the real product, no matter what you’re selling.

Why This Works

Subscriptions remove small decisions. No need to reorder, repurchase, or re-engage. That’s a powerful driver of habit and loyalty.

Your Opportunity

Even if your product isn’t naturally recurring, you can build convenience into your model:

  • Offer pre-scheduled orders.
  • Let customers skip or pause anytime.
  • Use auto-ship as a feature, not a trick.

Pro Tip

Avoid being overly aggressive. Make cancellation and changes easy. Frustrating users is the fastest way to kill long-term value. Focus on keeping them happy—not trapped.

10. The average subscription box customer spends 57 dollars per month on subscription services

People Are Willing to Spend

When you average it out, the typical subscription box customer spends 57 dollars monthly. That’s not pocket change—it’s a clear budget category in people’s lives.

What’s in the Box?

From snacks and coffee to niche hobbies, pets, and beauty—subscription boxes are about joy and discovery. People don’t just buy—they look forward to what’s coming.

How to Build a Strong Subscription Box

If you’re in eCommerce:

  • Prioritize packaging. The unboxing experience is key.
  • Curate with purpose. Don’t just stuff boxes—create a theme.
  • Rotate products. Keep things fresh to avoid subscription fatigue.

The Retention Game

After month three, subscribers tend to drop off. Combat that by adding surprise bonuses, loyalty perks, and milestone gifts. Treat your subscribers like insiders—not just customers.

11. Subscription businesses grew revenues by 17.8% YoY in 2024, even amid broader economic slowdown

Subscriptions Are Resilient

While many industries struggled or stagnated, subscription-based businesses kept growing. A year-over-year growth of 17.8% during a slow economy is a strong signal that recurring revenue is more stable.

Why This Happens

During tough times, customers cut out big expenses. But they keep the small, useful subscriptions. Especially if they deliver value, save time, or help manage essentials.

During tough times, customers cut out big expenses. But they keep the small, useful subscriptions. Especially if they deliver value, save time, or help manage essentials.

Lessons for You

Think like a recession-proof business:

  • Price for value. Make your service feel essential, not optional.
  • Focus on retention. It’s cheaper than acquiring new users.
  • Offer pause and resume features to reduce churn instead of forcing cancellations.

Example

Streaming, food, and cloud tools all grew because they fit into everyday routines. Design your offer to slide into someone’s life, not interrupt it.

12. 67% of DTC brands plan to launch subscription offerings by 2026

The Future Is Recurring

More than two-thirds of direct-to-consumer brands are planning to launch subscriptions in the next year. That’s because subscriptions offer better margins, more data, and ongoing relationships.

Why Brands Love This Model

Instead of fighting for attention over and over, they secure monthly revenue. Plus, they get to learn about their customers continuously—what they like, how they shop, when they cancel.

Getting Started

If you’re a DTC brand:

  • Begin with a “subscribe and save” model.
  • Offer flexible plans—monthly, bi-monthly, quarterly.
  • Highlight long-term benefits (convenience, exclusivity, early access).

Scaling Up

As your subscriber base grows, invest in lifecycle marketing. Use automation to build habits, celebrate milestones, and reactivate churned users. Think like a retention marketer from day one.

13. Automotive subscriptions are projected to generate 53 billion dollars annually by 2030

Subscriptions Aren’t Just for Software

Cars, trucks, and even scooters are entering the subscription world. Automotive subscriptions—both for vehicles and in-car services—are forecasted to hit 53 billion dollars a year by 2030.

What This Means

People want flexibility. Leasing a car for a month, paying monthly for features like heated seats, or subscribing to software upgrades—these are all on the rise.

If You’re in This Space

This is your time to experiment. Whether you’re a manufacturer, dealership, or mobility startup, ask:

  • What can be unbundled into a service?
  • Can we offer maintenance, insurance, or upgrades as a package?
  • How do we make the experience mobile-first?

Key Insight

As ownership becomes less important, access becomes the new luxury. Design your offer around convenience, speed, and status—not just the product.

14. 72% of businesses say recurring revenue from subscriptions makes them more resilient

Predictability = Power

Nearly three-quarters of businesses report that subscriptions make them more resilient. That’s because recurring revenue gives better cash flow, planning accuracy, and investor confidence.

How to Think About This

When you rely on one-time sales, every month starts at zero. Subscriptions give you a floor. They reduce pressure on constant selling and help you weather downturns.

Apply This Thinking

Even service businesses—like coaching, consulting, or creative work—can build recurring packages:

  • Monthly retainers
  • Access to a private group or tool
  • Content libraries or templates

Build With the Future in Mind

Make sure your billing systems, support, and retention tactics can scale with growth. Resilience isn’t just financial—it’s operational.

15. The e-learning subscription market is expected to reach 60 billion dollars by 2028

Learning Goes Monthly

E-learning is booming, and subscriptions are the preferred model. Whether it’s coding, design, business, or hobbies—people now expect to learn on-demand.

Why It Works

Unlike a one-time course, subscriptions allow learners to:

  • Pace themselves
  • Try multiple topics
  • Revisit material anytime

And for businesses, it’s a way to turn static content into ongoing revenue.

If You’re in Education

Focus on:

  • Structure. Create a monthly roadmap or curriculum.
  • Community. Help learners stay engaged and ask questions.
  • Updates. Keep content fresh—add lessons, quizzes, or live calls regularly.

Don’t Forget

People will churn if they stop learning. So build feedback loops. Ask what’s missing. Add “what’s new this month” highlights. Make every login feel valuable.

16. 60% of cloud infrastructure vendors operate primarily on subscription revenue

The Cloud Is Built on Subscriptions

The backbone of the digital world—cloud infrastructure—is now run mostly on subscriptions. From AWS and Azure to niche hosting and CDN platforms, 60% of vendors now depend primarily on recurring revenue.

Why This Is a Smart Move

Cloud infrastructure is essential. It’s like electricity for digital businesses. That means:

  • Users need it 24/7
  • Pricing scales with usage
  • Subscription makes budgeting easier for clients

It’s not just good for vendors—it’s better for customers, too.

What This Means for Your Tech Business

If you’re offering digital infrastructure or developer tools, you should:

  • Price by tiers that reflect real usage: storage, API calls, traffic
  • Offer easy entry points with pay-as-you-grow models
  • Show customers how they’re getting value month over month

Key Tip

Dashboards and usage reports help retention. When customers can see the ROI, they stick longer. Don’t just deliver service—show the outcome.

17. 49% of gym memberships in North America are now digitally managed subscriptions

The Gym Is Going Digital

Almost half of all gym memberships are now managed digitally—through apps, web portals, or mobile-first subscriptions. This shows how even physical experiences are now powered by digital infrastructure.

The New Fitness Experience

Digital management doesn’t just mean automation. It means:

  • Flexible booking
  • Usage tracking
  • Online classes and hybrid options
  • Digital-only fitness platforms with no physical location

This shift has created space for new models: from Peloton to local yoga studios with subscription access to live Zoom classes.

This shift has created space for new models: from Peloton to local yoga studios with subscription access to live Zoom classes.

How to Compete in This Space

If you’re in fitness or wellness:

  • Build your own app or use platforms that allow digital management
  • Create multi-channel experiences—some in-person, some on-demand
  • Offer value even when people don’t come in person

Make Retention a Feature

Send check-in messages, milestone rewards, or goal tracking. Fitness is emotional—tie your subscription model to progress and confidence.

18. Subscription-based gaming is projected to exceed 11 billion dollars in global revenues by 2026

Gaming Goes Recurring

The gaming industry is no longer just about one-time purchases. With models like Xbox Game Pass, PlayStation Plus, and Apple Arcade, subscriptions are becoming standard. And by 2026, this will be a massive 11 billion dollar segment.

What’s Driving It

Gamers love access. Instead of paying 60 dollars for one title, they can try dozens for a low monthly fee. It’s Netflix for games—but better.

Also, cloud gaming has made access faster and cheaper. No console required.

Lessons You Can Use

Whether or not you’re in gaming, this shows:

  • People value variety and discovery
  • They want to pay for the experience, not just the product
  • Monthly billing lowers the barrier to entry

Apply the Insight

If you run a product-based business, think about:

  • Offering a rotating bundle of products or content
  • Building seasonal releases or content drops
  • Using achievements, rewards, and gamified progress

Gamification works across industries. Use it to improve your product and extend subscriptions.

19. 83% of marketers say subscriptions improve customer retention and LTV

Retention Is the Real Win

Most marketers agree—subscriptions don’t just make money. They keep it. 83% say subscriptions improve retention and lifetime value (LTV). That’s because customers are easier to keep when you have an ongoing relationship.

What Makes This Work

Subscriptions aren’t just a payment model. They’re a trust model. When someone subscribes, they’re giving you permission to deliver value regularly.

Action Steps

To maximize retention and LTV:

  • Set a clear expectation of value at signup
  • Deliver something new or improved each billing cycle
  • Stay ahead of churn signals (missed logins, declined payments, complaints)

Marketing Tip

Don’t stop marketing after signup. Use emails, in-app prompts, and social channels to reinforce the value of your subscription. Make customers feel they’re part of something.

20. Retail subscription churn rates average 6.1% per month, with best-in-class under 3%

Churn Is the Hidden Killer

While subscriptions can bring steady revenue, they also come with a trap: churn. In retail, the average monthly churn is 6.1%. That means you’re replacing over 70% of your users every year unless you improve retention.

Best-in-class players? They keep churn under 3%.

What Causes Churn

  • Boring or repetitive offerings
  • Poor customer support
  • Pricing that doesn’t feel worth it
  • Lack of customization
Lack of customization

What You Can Do

If you’re running a retail subscription box or service:

  • Survey users often—ask what they liked or didn’t
  • Add customization options (choices, skips, upgrades)
  • Give early warning before renewals and make canceling respectful

Fix It Before It’s Too Late

The earlier you track churn signals, the easier it is to save a user. Look for:

  • Fewer opens or logins
  • Payment failures
  • Slower usage or engagement

Use automation to offer help, incentives, or win-back offers before they walk away.

21. 89% of fintech apps use tiered subscription models for monetization

Fintech Is All-In on Subscriptions

Almost 9 out of 10 fintech apps now use tiered subscription models. From budgeting tools and investment platforms to neobanks and crypto wallets, tiered pricing helps serve both free users and power users without alienating either.

Why It Works

Fintech is a data-heavy space. Users want access, speed, insights, and control. Tiered subscriptions let you offer:

  • Free basic access to attract users
  • Paid tiers with advanced features
  • Custom plans for professionals or teams

It creates a ladder. And that ladder helps users climb toward higher value.

How to Implement This

If you’re building a financial or productivity app:

  • Start with 2–3 clear tiers: basic, pro, and advanced
  • Make upgrades frictionless (in-app upgrades, one-click billing)
  • Tie features to outcomes, not just functionality (e.g., “save 10 hours a month”)

Key Consideration

Don’t gatekeep core value. Let your free tier be truly useful. People upgrade when they already trust your product, not when they’re frustrated by limits.

22. The average churn rate across all industries for subscriptions is 5.6% monthly

You Must Battle Churn Every Month

Across industries, the average monthly churn is 5.6%. That means in just six months, you could lose a third of your subscribers unless you actively work to retain them.

Churn Is Not Just a Number

Churn represents:

  • Lost revenue
  • Wasted acquisition spend
  • Broken product-market fit

It’s not just the user leaving—it’s the reason why they left.

What You Should Do Immediately

  • Implement feedback at the cancellation point. Ask why they’re leaving.
  • Create exit surveys or downgrade options.
  • Follow up after cancellation. Sometimes a simple message can win them back.

Bonus: Use Inactivity Signals

Often, users don’t churn because they’re unhappy. They churn because they forget. Set up alerts for low engagement and intervene with offers, nudges, or feature highlights.

23. B2B subscriptions drive 76% of recurring revenue in the technology sector

B2B Loves Recurring Revenue

In tech, subscriptions account for over three-quarters of recurring revenue. That’s huge. It shows that businesses want predictability just as much as consumers.

Why This Model Works in B2B

  • It aligns with procurement and budgeting cycles
  • It reduces upfront costs
  • It supports ongoing service and product updates

If you can make your product indispensable to another business, they’ll keep paying for it month after month.

If you can make your product indispensable to another business, they’ll keep paying for it month after month.

How to Take Advantage

For B2B founders:

  • Build onboarding that shows fast time-to-value
  • Use customer success teams, not just support
  • Offer annual billing discounts to improve cash flow and retention

Think Bigger

B2B subscriptions aren’t just for software. Agencies, platforms, and even manufacturing services can use this model. Think about ways to offer access to your expertise or capacity on a recurring basis.

24. Education platforms with subscription models see 45% higher student retention vs. pay-per-course

Subscriptions Make Learning Stick

When students subscribe, they commit. Platforms that use subscriptions—rather than selling courses one-by-one—see almost 50% better retention.

That’s not a small difference. It’s a sign that model matters.

Why This Happens

  • Subscription learners feel more ownership over their learning
  • They’re not choosing “should I buy this” every time
  • Platforms deliver updates, new content, and added features regularly

This helps form a learning habit—and habits drive retention.

How to Use This Insight

If you run an education platform or course-based business:

  • Convert standalone courses into a library or bundle
  • Offer one low monthly fee to access everything
  • Add live Q&A, workshops, or member-only community to increase stickiness

Track Learning Milestones

Help users see their progress. When learners feel improvement, they stay. Use streaks, certificates, and goal-setting tools to give motivation along the way.

25. IoT companies using subscriptions report 28% higher valuation multiples

Investors Love Predictable Revenue

In the Internet of Things (IoT) space, companies that use subscription pricing enjoy 28% higher valuation multiples. That’s because investors value predictability and customer lock-in.

Why Subscriptions Work in IoT

IoT devices are often sold at thin margins. But the real value comes from:

  • Data
  • Maintenance
  • Software updates
  • Analytics dashboards

Subscriptions give a recurring layer of monetization. Instead of a one-time hardware sale, you build an ecosystem.

Apply This Strategy

If you’re in hardware, think:

  • Can we charge for access to advanced data insights?
  • Can we include remote updates or customer support in a subscription?
  • What services will users need over time?

Investor Tip

Make sure your pricing aligns with the lifetime value of your hardware. Bundling device + subscription increases both revenue and loyalty.

26. Subscription insurance models are predicted to account for 12% of the market by 2032

Even Insurance Is Getting a Makeover

Traditionally, insurance is paid in big annual premiums. But now, things are changing. Subscription-based insurance—monthly, flexible, and digital-first—is predicted to grow rapidly, making up 12% of the entire market by 2032.

Why This Change Is Happening

  • Consumers want control over their plans
  • Pay-as-you-go fits gig economy workers
  • Digital platforms reduce overhead and allow for dynamic pricing

From renter’s insurance to car and device protection, modern users expect flexibility and transparency.

From renter’s insurance to car and device protection, modern users expect flexibility and transparency.

How You Can Ride This Trend

If you’re in fintech, insurance tech, or consumer protection:

  • Offer smaller, flexible policies that feel lightweight
  • Let customers adjust or cancel at any time without penalties
  • Build trust with easy claims processes and instant quotes

Don’t Overcomplicate

Insurance can feel intimidating. Use plain language, quick signup flows, and instant decisions to win over users. Make it feel like any other subscription—simple and reliable.

27. 80% of new SaaS startups launch with subscription-first business models

Subscriptions Are Now the Default

In today’s startup world, most new SaaS products begin with a subscription-first mindset. That means recurring revenue isn’t an upgrade—it’s the starting line. And for 80% of new SaaS companies, this is already the playbook.

Why This Matters

SaaS buyers are conditioned to expect subscriptions. They want:

  • Lower upfront cost
  • Ability to scale plans up or down
  • Regular improvements and updates

For founders, it creates steady income and lets you forecast growth more easily.

Tips for New SaaS Startups

  • Design pricing tiers that grow with your customer
  • Use trials, freemium, or usage-based pricing to get early adoption
  • Focus on long-term value, not just flashy features

Avoid This Mistake

Don’t underprice in the early days. Many startups try to win customers by being the cheapest. Instead, prove your value clearly and charge for it.

28. The pet care subscription market grew by 135% between 2020 and 2024

Even Pets Have Subscriptions Now

From pet food to toys to health plans, the pet care industry has fully embraced subscriptions. And with a 135% growth over four years, it’s clear that pet owners love the convenience.

What’s Behind This Boom

  • People adopted more pets during the pandemic
  • Monthly deliveries make feeding and care easy
  • Subscription boxes add fun and novelty

This market is also built on emotion. Pets are family, and people are willing to pay monthly to care for them properly.

Launching in Pet Subscription Space?

Here’s what matters:

  • Reliability—food must arrive on time
  • Personalization—size, breed, allergies
  • Connection—include pet profiles, milestones, and user-generated content

Creative Tactic

Celebrate pet birthdays, send surprise treats, or include handwritten notes. When owners feel like your brand knows their pet, loyalty follows.

29. Subscriptions in home automation products increased by 220% in the last 3 years

Smart Homes, Smarter Revenue

Home automation products—like security systems, lighting, and smart speakers—are no longer one-time gadgets. Now, 220% more of them come with subscriptions.

Why? Because people want more than hardware. They want:

  • Remote access
  • Cloud storage for video
  • AI-based alerts and automation

Hardware + Software = Recurring Value

Even a simple device can become a service when bundled with a monthly plan.

If you’re in the smart home space:

  • Build around peace of mind (security, energy savings, health)
  • Let users control everything from mobile apps
  • Add upgrades and integrations over time to keep value growing

Make It Seamless

Auto-renewal, minimal setup, and easy device pairing are key to customer happiness. The less friction, the longer they’ll stay.

30. 9 out of 10 investors believe subscription models offer more predictable growth than transactional models

Investors Are All-In on Subscriptions

When 90% of investors prefer subscription-based companies, it’s clear where the wind is blowing. Predictable growth, recurring revenue, and lower churn make these businesses more attractive for funding and acquisition.

Why This Is So Powerful

Investors don’t just want growth. They want forecastable growth. Subscriptions give better:

  • Revenue visibility
  • Cash flow predictability
  • Customer lifetime value metrics

This helps with everything from hiring plans to valuation to preparing for IPO or exit.

This helps with everything from hiring plans to valuation to preparing for IPO or exit.

Use This Insight to Raise Capital

If you’re raising money:

  • Highlight your Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR)
  • Show cohort retention curves
  • Present LTV to CAC ratios and expansion revenue potential

Think Long-Term

Even if you start with a transactional business, look for ways to add subscriptions. It could change how investors view your risk and reward profile entirely.

Conclusion

The numbers don’t lie—the subscription economy is booming. But more importantly, it’s evolving across every sector. From software and fitness to pet care and smart homes, the message is clear: people prefer ongoing value over one-time transactions.

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