One word to define the subscription economy in 2024? Change. 

This year, we’ve witnessed subscriptions expand beyond digital content and ecommerce and into niche sectors like home services and even carbon offset programs. We’ve seen evolving regulations around transparency, renewal notifications, and cancellation processes (e.g. the “click-to-cancel” rule). And we’ve even experienced the rise of a so-called “subscription fatigue,” forcing today’s brands to rethink their retention strategies and create new ways to keep subscribers engaged.

All of this change begs the question: What trends will shape the subscription landscape next? Recurly seeks to answer this in our upcoming 2025 State of Subscriptions report — and we’re giving you a sneak peek into our findings.

What can you expect from the 2025 State of Subscriptions?

Each year, Recurly releases our landmark State of Subscriptions report, offering insider data on market performance, future trends, and the challenges ahead for subscription businesses. With insights from over 2,200 brands worldwide and a platform managing 65+ million subscribers, this year’s report is one of our most comprehensive yet. 

From acquisition trends to retention strategies, here’s a first look at some of our high-level findings.

Acquisition rates are on the decline

Across the board, we’re seeing a notable decline in new subscriber acquisition — with some industries experiencing a much greater year-over-year decline than others. Simultaneously, however, overall subscriber growth is still on the rise. 

How can this be? Because as subscription businesses grow, their rate of subscriber acquisition typically slows as well. 

As the market grows increasingly saturated, traditional growth strategies like free trials are no longer yielding the desired results, which means subscription businesses must get creative with how they attract and convert new customers. To break through the noise, subscription businesses need to rethink their marketing strategies, test out innovative offers, and focus on targeting their audiences with the right content and products at the beginning of their subscriber journey.

… which means retention is the new growth-driver

With acquisition rates dropping comes the need for a new growth-driver: retention. In the current subscription landscape, keeping existing subscribers happy isn’t just a nice-to-have — it’s essential. But given an average subscriber lifecycle of roughly two years, merchants face a limited window to deliver meaningful value and secure loyalty. A retention-first mindset transforms this challenge into an opportunity, allowing businesses to not only maintain their subscriber base but also set the stage for sustainable, long-term growth. 

So, what defines a successful retention strategy? 

At its core, retention hinges on three key principles: simplicity, flexibility, and loyalty. Subscribers don’t want to feel trapped in rigid contracts; they want the freedom to choose how and when they engage with your service. They expect easy payment options, tailored experiences, and rewards for their commitment.

A strong retention strategy might include:

  • Loyalty incentives: Discounts, rewards, or points programs that give subscribers a reason to stay.

  • Pause functionality: Allowing customers to take a break without cancelling their subscription entirely.

  • Tiered pricing: Offering plans that align with subscribers’ evolving needs and budgets.

  • Alternative payment methods: Enabling seamless transactions through Apple Pay, PayPal, or other preferred options.

By focusing on these areas, businesses can turn retention into a key growth engine to fight acquisition declines and churn.

Subscription challenges? AI and tech to the rescue

It should come as no surprise that AI (artificial intelligence) has made its way into the world of subscriptions. From automating processes to delivering personalized subscriber experiences and unlocking deeper analytics, AI is reshaping how businesses approach subscription management.

One of AI’s most powerful benefits? Its ability to tackle churn — a persistent challenge across industries. Whether it’s voluntary churn, like subscribers choosing to cancel, or involuntary churn caused by payment failures, AI offers effective solutions to keep customers engaged and revenue steady.

But churn isn't the only subscription challenge merchants face. In the report, we’ll touch on how AI helps subscription businesses address other common hurdles, such as fraud, payment failure, and siloed data. By streamlining these processes, AI not only reduces risk but also frees up resources for businesses to focus on delivering value to their subscribers.

Behind the data: Join our State of Subscriptions webinar

Want to unlock the full story behind our State of Subscriptions data? Tune in on February 5, 2025, for an exclusive virtual webinar, 2025 State of Subscriptions: Behind the data, where we will dive even deeper into industry benchmarks, trends, and predictions across churn, retention, payments, and more. Featured speaker Mary Rosberg, VP Growth Evangelist at Recurly, will break down the report’s findings and share actionable insights to help you grow and retain subscribers.

What to expect:

  • A deeper analysis of acquisition, churn, and retention benchmarks.

  • Success stories and strategies from top subscription businesses.

  • A live Q&A to tackle any questions around your must-haves in 2025.

Save your spot today! Can’t join us live? Register anyway, and you’ll receive the recording straight to your inbox.

Sign up for early access to the report!

The 2025 State of Subscriptions is more than just a report — it’s a roadmap for navigating the upcoming year with confidence. Whether you’re looking to refine your retention strategies, embrace new cutting-edge technologies, or simply understand the trends shaping the industry, this report is your go-to resource.

Join the report waitlist now for first access to the full report, and don’t forget to register for the webinar to explore the findings with us live.