Our annual industry leading report, the 2025 State of Subscriptions just dropped, providing exclusive data on market performance, future trends, and key challenges in 2025. With insights from over 2,200 brands and 67 million subscribers, this year’s report is our most comprehensive yet. Here’s a sneak peek to spotlight some of the insights and themes presented in the report.

Acquisition rates are on the decline

Acquisition rates across industries have been on a downward trend since the pandemic. Rates have declined from 4.1% in 2021 down to 2.8% in 2024. At the same time, overall subscriber growth continues to climb, showing a 15.4% increase in the last year. Some may be surprised, how could acquisition rates decline and yet overall subscriber count increase? 

The truth is that as subscription businesses grow, their rate of subscriber acquisition typically slows as well. As competition increases and subscribers have more options, traditional strategies like free trials are no longer effective. Subscription businesses must find new, creative ways to attract and convert 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. The path to profitability requires a new way of thinking for those in the subscription industry.

Retention is now more important than ever

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. Subscription companies need to adopt a retention-first mindset, not only to maintain their platform, but to build stable growth over the long term. 

  • Pausing features have grown by 66% year-over-year across industries and allowed merchants to retain 51.7% of at-risk customers.

  • Return acquisition percentages (RAP) reveal that subscribers who churn are not totally lost. Industries like digital media (24.3%) and travel, hospitality, and entertainment (22.9%) lead the way for subscribers returning.

  • 71% of all companies across all industries offer both monthly and yearly subscription plans to meet subscribers where they are. This flexibility provides subscribers with the incentive to stay. 

  • 70% of subscribers would reconsider canceling their subscription if loyalty incentives or plan discounts were offered.

The data backs up that strong retention strategies give subscription companies the best ability to maintain subscriber counts and grow for the long term. These can include tactics such as:

  • 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.

Retention hinges on three key principles: engagement, flexibility, and frictionless buying—spanning pricing, products, and payment options.

Subscription challenges? AI and tech to the rescue

Technology challenges can lead to churn, dissatisfied subscribers, and even fraud. AI and new tech are a powerful tool for tackling these challenges. AI is revolutionizing the subscription industry by automating processes, enhancing personalized subscriber experiences, and providing deeper, more actionable analytics.

Churn: AI is a powerful tool to address the issues presented by churn. This tech enables merchants to analyze subscriber behaviors, predict churn risks, and automate recovery efforts. Arguably, AI can provide better ways to cross-sell, identify inefficiencies, and enhance subscriber messaging. These tech advancements, including machine learning, not only help with churn, but dunning, acquisition, and so much more!

Fraud: Over 27 million payments were declined due to fraud in 2024. Subscription companies can use technology such as APMs, tokenization, biometric authentication, and more to combat fraud. Partnering with the right billing platform can help you implement these security methods and work with dedicated security experts to negate fraud. Don’t let payment declines—whether by fraud or other reasons—hold you back.

Data silos: Fragmented, homegrown solutions often prevent leadership from making informed decisions. Siloed data impacts compliance, subscriber insights, and financial planning. Subscription management platforms provide real-time data sharing and a full view of your business performance. 

You can find out more about how AI and tech are tackling these challenges, including data and exclusive insights, in the 2025 State of Subscriptions report.

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.