Subscription market in Poland. We are subscribing more and more willingly
Subscription models are becoming more and more popular every day, also in Poland. Used by most people, although not everyone is aware of it. Subscription itself is nothing new, just an old idea increasingly adapted to modern technology. How subscription systems work, why they are profitable and what are the biggest companies dealing with such services?
Subscription – what it is?
For young people, the concept of subscriptions is associated mainly with YouTube, where you can subscribe to the channel of your favorite creator. It means nothing more than being able to easily and regularly follow the content shared. In the case of YouTube, it is a free service, but it is beneficial for both the creator and the viewer.
However, there is another subscription model, probably associated by slightly older consumers. Some still remember the magazines delivered to their mailbox each month. This was also a subscription. So what does the term mean? Usually receiving some objects or services for a fee at regular intervals. Payments are often collected automatically, so you don’t have to keep an eye on the transfer. It’s a very convenient form, especially in today’s internet world.
Every month, for a certain amount of money, we gain access to services such as landline internet. Another example of fixed subscriptions are TV and mobile subscriptions.
Mobile networks are starting to change their attitude towards their customers. We’re increasingly seeing offers without long-term contracts. A subscription-based model that can be changed at any time is, for example, Orange Flex. Many more services and products are available as subscriptions, and this model of cooperation is constantly evolving And is covering more and more different industries.
Why subscriptions are so popular?
In the era of consumerism, when everyone wants to have a product or service „already” subscription model works perfectly. Takes the onus off the customer to remember to pay, as well as to shop themselves. Today, even daily meals can be delivered by courier straight to your door. The subscription model is therefore very relieving to the human mind.
The amount of several dozen zloty per month for a fairly well-off person is not a large expense, especially when looking at gaining access to such a huge library of content or a wide range of services. It seems that the customer gets a lot for little money. It is only when the monthly subscription fee is multiplied by the years of use that it becomes apparent how large the amount is. And almost imperceptible on a daily basis.
Another issue is a specially designed model for families or groups of friends. This is a very popular solution already introduced by major companies with a subscription model. Premiums for consumers drop instantly, and the company gains several new customers at once. In fact, it’s a win-win for both parties.
The trend will only grow
The subscription model trend has already taken on incredible proportions. And the number of subscribers is going to go up. It is connected with easier and cheaper access to the Internet and the possibility to buy a computer at a much lower price than a few years ago. For this, people do not need many products on their own. Subscription comparison sites such as Submatiq are now available which bring all of them together in one place.
When subscriptions no longer work?
There’s no denying that there are situations where a subscription completely fails. Similarly, there will always be a group of consumers who choose not to subscribe to a particular service in this form. One of the rather problematic products are, for example, computer software. After the cancellation of the cooperation, the customer is left with nothing, and often with no job opportunities. For example: if someone has been using Office 365, cancelling it means they lose the programs they need for their daily work. Nonetheless, the popularity of subscriptions continues to grow, and companies as well as consumers are able to come up with solutions to these problems.
Well-known subscription model companies
Netflix
Who has not used Netflix at least once, let him cast the first stone. Next to HBO GO, it’s the most popular VOD service these days. For a monthly payment a customer receives access to a vast library of movies, series and short films from various genres. Netflix’s revenue is huge today, and the algorithm it uses easily draws fresh subscribers into the big network permanently. According to a 2019 report. Netflix has as many as 139 million subscribers and their number is constantly growing.
Spotify
So-called. „pirating” music is widely criticized today, mainly due to the emergence of streaming services. Spotify is one of them, which already has more than 90 million subscribers. For a small amount of money, you can gain access to a huge library of music and podcasts, the ability to listen to music without Internet access, and playback of recordings in the background without having the app on the main screen of the unlocked phone.
Office 365
Microsoft services have also been available for some time in a subscription model under the name Office 365. It’s a solution that ensures all programs are kept up to date. Until now, the standard Microsoft package had programs from a certain year, which were no longer changed or extended. The subscription model, on the other hand, allows constant access to the company’s latest products, which are constantly being improved and enhanced. It is a beneficial form of service for entrepreneurs who need the most up-to-date programs in their company.
The subscription generation
It’s hard to deny that the true generation of subscribers is yet to come. Young people who are familiar with the Internet and media from the beginning of their lives are more likely to decide on services of this type. In the future, they will be the ones dictating the conditions for big businesses, which will have to be very flexible and listen to the needs of consumers. In fact, only a careful observation of the market can allow to create a subscription model that both satisfies the customer and brings profits to the company. However, looking at the popularity of such services, so far the actions of companies are very effective.
