Subscriptions for physical goods set to eclipse digital by 2025: report
Subscriptions for physical products are expected to overtake digital subscriptions by 2025, according to a report by Juniper Research.
Subscriptions for physical products sector are projected to grow from about US$64 billion this year to more than US$263 billion by 2025, overtaking digital service subscriptions like Netflix or Prime.
The significant growth is the result of the impact of Covid-19 pandemic on the economy, which according to Juniper Research “has brought the physical goods subscription economy into common awareness”.
The research also found that multiservice subscriptions will become a $69 billion industry led by tech conglomerates, including Amazon’s Prime and Apple One, by 2025.
“The digital subscription market will be heavily disrupted by multi-service offerings,” said James Moar, research author.
“Physical subscriptions are insulated against this to a degree, as many are produced directly by the goods providers. However, we expect some subscription marketplace providers to play an analogous role in the coming years.”