Subscription economy fuels consumer fatigue and price sensitivity

Subscription models are replacing ownership with access across a range of services, from traditional newspapers and magazines to gyms and streaming platforms. Consumers benefit from convenience, lower upfront costs and the perception of more sustainable consumption, while firms gain recurring revenue, customer loyalty and detailed usage data.

Studies show that product‑based subscriptions are less common than service‑based ones, with gyms and music‑streaming services displaying the highest price sensitivity. Higher switching costs tend to increase loyalty and reduce price responsiveness. In sports streaming, exclusive content can lessen price sensitivity, but the fragmentation of content across multiple platforms forces users to subscribe to several services, raising overall costs. This accumulation contributes to a growing “subscription fatigue” among consumers.