Digital media subscription benchmarks: How does your business compare?
The streaming industry continues to transform how we consume media and enjoy entertainment. Modern-day customers are always on the lookout for ways to stay entertained, especially in the comfort of their homes, and streaming subscriptions offer a vast array of content at their fingertips.
According to Forbes, video services are the most popular subscription-based streaming service, with 78% of U.S. households subscribing to at least one platform–an increase from 52% in 2015. Additionally, 82 million Americans pay for on-demand music streaming services–audio streaming apps alone brought in more than $20 billion in 2021.
The market, too, has become increasingly competitive. While economic pressures play a significant role when evaluating online subscription services, consumer demands are evolving where personalization, value, and convenience are necessary. Subscription brands must employ their best strategies across the lifecycle, from acquisition to retention to cancelation.Â
But what does it mean to be competitive? Before you start drafting your next successful strategy, you must understand where your business stands and what’s achievable based on your competitors’ performance and industry standards.Â
This is where subscription benchmarking becomes essential.
The importance of subscription benchmarks
Industry benchmarks are a powerful tool that offers actionable insights that guide businesses to achieve sustainable growth, adapt to market trends, and stay ahead of the competition.Â
When focusing on growing your subscriber base and recurring revenue, understanding the importance of industry benchmarks and incorporating them into your decision-making processes is key. You can use this data to:Â
Identify industry trends and best practices: Analyze benchmark data to uncover emerging trends, market shifts, and consumer preferences, allowing you to respond quickly to their needs. By studying and adopting top performers' strategies, you can streamline processes, improve customer satisfaction, and boost your bottom line.
Run a competitive analysis and evaluate your performance: Gauge your company's progress against competitors and identify areas where you excel or need improvement. This analysis can help you optimize your operations, enhance efficiency, and align your strategies with industry leaders.Â
Formulate your strategy and set realistic goals: Get a clear picture of what is achievable within your industry, enabling you to set attainable goals. Additionally, industry benchmarks provide a data-driven foundation for making informed decisions–prioritizing investment opportunities, allocating resources effectively, and developing growth strategies backed by industry standards.Â
An overview of digital media subscriptions
From streaming media to online gaming to digital publications, there are many ways for subscription businesses to monetize content. If leading Digital Media and Entertainment brands want to keep their brand growing, they must stand out.Â
In this dynamic landscape, innovative acquisition strategies and seamless payment methods are pivotal in delivering a unique and engaging subscriber experience.Â
But don’t just take our word for it.
We’ve gathered data from over 292 Digital Media and Entertainment subscription businesses–including leading brands like Paramount+, Sling TV, Twitch, TIME, fuboTV, and True Royalty TV–to give you all the insights you always wanted to know about the revenue generated, revenue recovered, involuntary churn rate, and preferred payment methods in online subscription services.
And you’re just a click away.
Get a better understanding of how your media subscription business compares to some of the biggest brands in the industry. Download our one-page report on State of Subscriptions: Media benchmark data now.