More than half the UK population now subscribes to streaming platforms such as Netflix, Amazon Prime and Spotify.
That’s according to the latest insights from the Data & Marketing Association (DMA), which found that 51% of consumers now subscribe to a TV/film streaming service, such as Netflix and Amazon Prime Video – a further 12% express an interest in using them.
The ‘Future Trends: Subscription Economy’ research is the latest in the Future Trends series, part of the DMA’s 2020 Customer Engagement campaign.
The series is compiled in collaboration with Collinson, dotdigital, Paragon Customer Communications and in partnership with Foresight Factory.
The figures reveal a steady growth in ownership and interest in media subscriptions over recent years; with 63% of consumers now falling into this category – up 7% from 2017.
Ownership of music streaming services (Spotify, Apple Music, etc) has also increased to 40%, up from 36% in 2017.
“Subscriptions appeal most to consumers looking for convenience and consistency”, said Tim Bond, Head of Insight at the DMA.
“Not only in terms of quality and value for money, but also time-saving benefits gained from brands offering relevant recommendations to their consumers”.
“Amid a global pandemic, we are seeing subscriptions continue to show their importance, bringing customers what they want, right to their door.
“From grocery products to entertainment, subscriptions offer customers easy access to goods and services without having to leave their homes.”
Will subscriptions remain popular in the future?
More generally, the proportion of people owning multiple types of subscriptions has increased from 33% in 2017, to 44%; the strongest appeal coming from Millennials and Centennials.
Age appears to be key, with an average age of 57 years-old for those that do not own any subscriptions; whereas those with multiple subscriptions have an average age of 32.
In addition, three-quarters of younger consumers currently have access to subscription services/platforms (75% of 16-24s; 74% of 25-34s).
“Subscriptions have opened the way to new models of ownership and the meanings consumers associate with that very concept” Bond added.
“In other words, the subscription economy is disrupting consumers’ traditional notions of possession.
“People still feel like they own media content, despite the fact they only have access to it for as long as it’s on the platform they pay for.”
You can read more about the DMA’s Subscription Economy research here.