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NEWS AND UPDATES ON QUANTUM PARTNERS AND PROJECTS

Existential crisis for subscriptions? Quantum’s Ava Seave joins Babbel’s Julie Hansen at the subSummit Conference to consider the risks

May 15, 2025

Acquisition percentages recurly

Ava Seave and Julie Hansen, CEO of Babbel  kick off the subSummit Conference (@SubSummit 2025) in a fireside chat keynote with a somber subject. They discuss the existential question: Even though subscriptions have been hailed as the greatest business model ever created for consumer and digital goods, providing convenience for consumers and brands with a predictable revenue,  what if the companies have just overdone it? What if subscriptions are starting to be seen as a toll on consumers’ wallets, an inconvenience or even a predatory business model? 

The most recent numbers that lead them to this are telling:

  • Industry-wide median acquisition rates for subscriptions dropped in 2024 to 2.8% from 2021's 4.8%
  • In the digital media and entertainment industry, subscriber acquisitions resulting from re-acquiring a subscriber who had formerly canceled is 1-in-4
  • 73% of publishers offer both annual and monthly subscription plans, recognizing users need for flexibility, but complicating the sales process at the same time

To read more deeply about subscription trends, go to  Recurly's 2025 State of Subscriptions and to Zuora's Subscription Economy Index, 2025. To find out about the subSummit, go here

#managementconsulting #subscriptions #subsummit #subscriptioncommerce