At some point, most have experienced “just one episode” turning into an all-day Netflix binge.
So it may come as no surprise that the value of the over-the-top video services market is expected to hit $54.1 billion by 2020, with video streaming defending its title as a heavyweight of the subscription commerce world.
But even industries with less binge-able content are turning to the subscription model. The May Subscription Commerce Tracker examines advances and developments in the space, ranging from subscription-based car access to subscriptions for digital fitness plans.
Around the Subscription Commerce World
With video streaming representing a growing share of the subscription market, tech giant Apple is looking for a leading role. Currently, its Apple TV app helps consumers discover desired content from other providers, sending them outside of the app to purchase it. But a new service planned for release this year would instead conduct subscription content purchases in the Apple TV app itself, positioning the app as a centralized content hub.
Subscriptions are also revving up in the transportation sector. Audi, for one, is reportedly mulling over a subscription plan to offer cars without a long-term lease. If the German automaker makes this move, it’ll be driving down the same path taken by several rivals in the automobile space.
Meanwhile, customers who want car access but would rather not drive are already wait-listing themselves for Lyft’s new subscription model. The rideshare company is planning a nationwide rollout of its monthly subscription service, which would cost passengers $200 per month for access to discounts and some free rides.
Keeping Subscribers Digging the Digital Workout
As the rush of New Year’s gym membership signups begin to slow down, once-eager resolution-makers may start to lose motivation to drag themselves out of bed and hit the treadmill.
Tobi Pearce, CEO and co-founder of Sweat.com, an online fitness offering for women, thinks his company has figured out one thing that many brick-and-mortar gyms have forgotten: It’s not just about providing the equipment, it’s about getting customers motivated to move.
In this issue’s feature story, Pearce explains the design of his online company’s health and fitness content subscription, and how it works to keep customers in the mindset to take advantage of the offerings — and keep on subscribing.
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.