Having a subscription for all kinds of products and services is an indispensable trend. There is even a name for it: subscription economy or ‘subscronomics’. Spain is the fourth European country with the most subscribers.
The growth of this business model has taken place thanks to the latest technological developments and the consequences of the corona virus. The Spanish market is also reaping the benefits of this. This year, Spain will have nearly 30 million active subscriptions. An increase in turnover of no less than 28% compared to 2020.
‘Subscronomics’- the subscription economy
Spain takes fourth place in the European market when it comes to the most subscriptions, according to the report ‘Subscronomics 2021’ prepared by Telecoming. This term is a combination of the words subscription and economics. The first three spots go to Germany, the United Kingdom and France.
The Spanish subscription economy is expected to continue to grow, rising to third place with 62 million active subscriptions in 2025. According to Telecoming, turnover in the Spanish subscription industry will be €4billion this year and double the turnover in 2025: €8billion.
Change of mindset
The transition to paying for use of goods from ownership has been underway for a while, but the pandemic accelerated the process. The corona restrictions further tightened the subscription model, making it no longer necessary, for example, to visit a point of sale first. This business model not only means a change in mentality among consumers, but also influences the organisation of companies. They go from selling products to providing services.
The most popular subscriptions are those for video on demand. Worldwide, these account for an average of 25% of the subscription market; in Spain as high as 33%. But not only music, film and television platforms such as Netflix and Amazon Prime use subscription services; the subscription model is also successfully entering the aviation, automotive and food industries.
This global trend can be seen as a precursor to the future economy, in which users are loyal and willing to pay for brands that provide them with a better experience and meet their service expectations.