The Prominence of Subscription Models

Subscription models can be found in almost any industry. From music streaming to monthly deliveries of video games to even dog walking services, many people are relying upon recurring payment methods to receive their favorite goods and services. It is especially alluring for people who prioritize convenience and affordability, so younger generations such as Millennials and Gen Z have been especially receptive to the rise of this business model. 

 

There are three main types of subscription models: curated, replenishment, and membership/access. Curated is the most used, making up 55% of the market, because it is catered to the individual consumer. Replenishment subscriptions, comprising 32% of the market, are used for essentials that are routinely depleted, such as groceries and office supplies. The remaining 13% of the market, membership/access services, offer their subscribers exclusive benefits and discounts. All three are enjoyed by a wide variety of people who are seeking the easiest way to receive their goods.