The Subscription Economy: Who’s Subscribing and Why

By: Mark McCrindle

Think back a decade. Your shelves were likely lined with DVDs, your car’s glovebox full of CDs, and buying software meant purchasing a physical box with a disc inside. Today, that world feels distant.

In its place is a new ecosystem built not on one-off purchases, but on ongoing access. From the entertainment we stream (Netflix, Spotify, Audible) and the news we read, we’ve seen the rise in the subscription economy, and it represents one of the most significant shifts in consumer behaviour and business strategy in the 21st century. In 2008, Spotify didn’t exist. Fast forward to 2025 and there are 696 million monthly active users.

This is more than a trend – it’s a fundamental change in the relationship between a provider and a consumer. The traditional, transactional model of selling a product has been replaced by a relational model built on ongoing value, and convenience. There has, however, been a shift in the sense of what ownership means. While consumers have unlimited access, they own less.

Understanding consumer sentiment behind this reveals insights on what modern consumers value – flexibility over commitment, experiences over possessions, and seamless integration into their lives.

Divided sentiment across generations

As digital natives, younger generations are the most enthusiastic adopters of subscription services. Almost half of Gen Z (48%) say they love or like subscriptions, compared to just 12% of Baby Boomers. Yet despite being less enthusiastic, older generations are still active users. More than four in five Gen X (83%) and two in three Baby Boomers (66%) hold at least one subscription. In contrast, subscriptions are near-universal among younger cohorts, with almost all of Gen Z (99%) and the vast majority of Gen Y (85%) signed up to at least one.

What are people subscribing to?

The most common subscription service to use across the generations is video streaming, followed by audio streaming. Gaming services are also common among Gen Z, Gen Y and Gen X, however publications are the next most popular service for Baby Boomers.

What drives the use of subscription services?

Almost half of Australians (45%) choose subscriptions for their convenience. Similarly, more than half of Australians who use subscriptions (54%) strongly or somewhat agree that subscriptions save them time and effort. The decision is also influenced by value for money and access to exclusive content.

Organisations that succeed in the subscription economy understand a key tension: consumers want the convenience of subscriptions but also fear being trapped. While younger generations are more likely to subscribe, they also desire agency, customisation, and personalisation. To build a lasting relationship with these customers, businesses must put them at the centre of their product, providing a constant stream of new content and a clear sense of value that not only justifies the ongoing cost, but empowers them with choice.