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Research Outline
Prepared for Maja L. | Delivered May 11, 2020
COVID-19 and Subscription Businesses
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Goals
To understand how COVID-19 is impacting subscription businesses for the purposes of writing a blog post.
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Early Findings
Resilient
According to the Subscription Impact Report, subscription businesses are so far
proving resilient
during the COVID-19 pandemic.
The report analyzed "hundreds of subscription-based companies" and more than half have not
seen any disruption
to their subscriber growth.
Of the companies that have seen their growth slow, they are still growing, just at a
slower pace
.
In fact
53.3%
of companies have seen limited impact from COVID-19,
22.5%
have seen their growth accelerate,
12.8%
have seen their growth slow, and just 11.4% have seen their growth contract.
Specific Sectors
Subscription businesses that are generally seeing
accelerated growth
are OTT video streaming, digital news and media, e-learning, telco and utilities, and communications software businesses.
The subscription rate for OTT video streaming companies grew
seven times
in March 2020 compared to a year earlier.
Digital news and media subscriptions grew
three times
over 2019 rates.
E-learning subscriptions grew
2.9 times
over 2019 rates.
Telco and utilities subscriptions grew
1.75 times
over 2019 rates.
Communications software grew
1.4 times
over 2019 rates.
B2B and B2C software and information services that operate on a subscription basis are
seeing limited impact
from COVID-19.
Consumer IoT, business IoT software, small business software, and memberships have seen their subscription
growth slow
during the crisis.
Consumer IoT and small business software only grew at
50% the rate
they did in 2019.
Membership subscriptions grew at just
two-thirds the rate
it did in 2019.
Subscription businesses that are
seeing their growth contract
are those in the travel and hospitality and sports-related services industries.
Other Data
A Brightback webinar that was presented to an audience of subscription-based business leaders found that
69%
of the attendees stated that their churn rate had been impacted by COVID-19.
Additionally,
13%
said they had halted all growth initiatives during the crisis.
Average daily cancel volumes increased by
50%
during March 2020, but some days the increase was as much as
166%
.
In-person subscriptions are suffering the most, but
"isolation-friendly" subscription services
are thriving (meal delivery, video streaming, home fitness).
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