The subscription market has grown more competitive in recent years, with multiple players aggressively working to attract subscribers. The growing market is forcing many players to get creative to stand apart in a crowded field of subscription services. For some subscription merchants, this means giving consumers access to discounts or coupons. For others, it means offering customers the ability to earn loyalty rewards that can be applied to other services.
The August Subscription Commerce Tracker™ looks at how companies are stepping up their efforts to win over subscribers by offering new tiers of subscription plans.
Notable Headlines From The Space
BMW, for example, recently rolled out a new subscription tier program that grants subscribers access to several vehicles in its lineup, including the 3 Series, the X2 SUV and the M240i convertible. The new offering is intended to offer consumers an alternative to buying a luxury vehicle, and includes a mobile app that enables subscribers to swap cars as often as they would like. BMW also recently reduced the price of its “Legend Tier” and “M Tier” subscriptions, which offer access to different vehicles.
Meanwhile, a major player in the video game market released a new subscription plan for gamers. EA launched its subscription offering Origin Access Premier service, which is priced at $15 per month or $100 per year. The service offers PC subscribers access to EA titles a few days before launch.
Other subscription businesses are looking to offer subscribers an experience that extends beyond their own product. Movie subscription service Sinemia, for example, recently made its debut, offering movie buffs access to a single movie viewing with plans starting at $3.99 per month. Sinemia also offers subscribers features that could set it apart from rival subscription movie services like MoviePass, including an app that provides access to discounts on rideshare services and meals at restaurants.
Deep Dive: The Meal Kits Market Faces A Crowded Plate
Speaking of meals, the meal kits services like Blue Apron and HelloFresh have been a cornerstone of the subscription market over the past several years. Recently, however, consumers’ appetites for meal kit subscriptions appear to be waning.
The subscription meal kit market is facing additional competition from home grocery delivery services, a market that is on track to reach $100 billion by 2025. This month’s Tracker includes a Deep Dive on the challenges currently facing the subscription meal kit market.
Amid “Fake News” Accusations, The New York Times Sees Paid Subscriptions Rise
News organizations have struggled for years to convince readers to pay for their content, rather than consume it online for free.
But recently, several news organizations reported good news in their efforts to win over subscribers. Among them is The New York Times, which recently reported a Q2 2018 profit of $24 million due to an increase of digital-only subscribers. This includes consumers who have maintained their subscriptions after introductory rates have expired and more expensive rates kicked in.
In the August Subscription Commerce Tracker™ feature story, David Gurian-Peck, The Times’ VP of subscription growth and planning, spoke with PYMNTS about how “fake news” attacks are boosting demand for journalism. The Times’ also plans to use data science to monitor the subscribers’ journey and lessons that news organizations can learn from non-journalistic subscription businesses.
To read the story, the Deep Dive and the latest headlines, download the new Subscription Commerce Tracker™.
About The Tracker
The Subscription Commerce Tracker™, powered by Recurly, is a bimonthly report that explores how companies use subscription-based commerce to build long-term customer relationships and steady revenue sources. The report includes notable developments in the market and the companies that are rapidly innovating the space.