It’s 2025, everyone. The year when acquisitions dropped to 2.8% and subscription re-engagement generated over $200 million. “How do we get more people in the door?” has been the question fueling marketing budgets. But today, we are witnessing a significant pivot to retention.

As Recurly’s VP Growth Evangelist, I get to work very closely with leading brands—charting the course into upcoming trends in this ever-evolving market. With tightening consumer budgets and increased competition, it’s clear that brands can’t rely solely on new signups to thrive.

As we kick-off this year, I want to take a moment to review what 2024 was like for subscriptions worldwide, and what this actually means for the industry. Here are the top headlines I think are worth highlighting.

Offering subscription pauses and easy cancellations

No more labyrinths. No more shady journeys. No more representative calls. To stay competitive, you need to offer flexibility through easy cancellations and alternatives.

Companies like Nuuly allow customers to pause their subscriptions instead of canceling outright. The rental clothing platform offers a  1, 2 or 3-month pausing option that keeps subscribers in their service without feeling trapped. 

The FTC’s click-to- cancel rule seeks to make cancelations as easy as sign-ups. This change is not just regulatory; it reflects a growing consumer demand for transparency and user-friendliness.

By offering options like pauses and simplified cancelations, you earn trust, reduce churn, and leave the door open for subscribers to return down the line. Indeed, churn isn’t necessarily goodbye. We’ve seen that 20% of acquisitions are actually returning subscribers. 

Building strategic partnerships and diversified channels

Gone are the days when you would offer a single product. The smartest brands are building ecosystems of value through strategic partnerships and diversified access channels.  

An interesting bundle is the streaming and grocery combo. For example, Paramount+ Essential plan is free for Walmart+ members. Consumers can access the streamer content at no extra cost for the duration of their Walmart+ membership, turning a nice-to-have subscription into a lifestyle staple.

Here’s a play I didn’t see coming: Chick-fil-A Play’s streaming app. I really love this concept. A free entertainment hub with family-friendly content like animated shows, podcasts, ebooks, and more. The result? Loyal engagement that not only drives foot traffic but also positions Chick-fil-A as more than just fast food—it’s an experience.

For subscription-based companies, forging partnerships that enhance value or complement core offerings drastically improves retention. Offering perks, exclusive benefits, and bundled experiences makes subscribers question, “Why would I cancel this?”

Check this out: An interesting conversation with Alaska Airlines and The Guardian on how to build LTV and improve retention. 

Relying on AI tools for improved engagement

Artificial Intelligence (AI):  the not-so-secret ingredient to driving personalized and meaningful customer relationships. From exclusive features and tailored recommendations to smart dunning campaigns, AI is a game-changer for both brands and subscribers. 

Spotify has been playing around with AI for a while now. In 2024, they launched their playlist generator, where Spotify premium users turn any idea into a playlist. Literally, any idea. I’m sure most of us would like a “house music for seizing the day even though it’s snowing outside and want to stay in bed” playlist. 

Other features like AI DJ and daylist encourage music discovery and curation—a perfect triad where artists get more listeners, consumers connect to new music, and Spotify generates more engagement. 

Your subscribers don’t just want a service—they want what they want, when they want it, and how they want it. AI tools allow you to deliver ultra-specific recommendations, alerts, and renewal reminders that demonstrate you care for their needs.

Here are some extra examples: 5 tactics to turn subscriber engagement into revenue

Let’s discuss these and more subscription trends

Subscription businesses are growing up. The market is no longer uncharted territory and consumers are wiser, more selective. Today’s battle isn’t just for attention—it’s for loyalty. As growth leaders, we shouldn’t obsess over big spikes in acquisition, but on creating experiences that make subscribers want to stick around.

Offering flexibility, building partnerships, and investing in AI-driven engagement strategies are signs of a more consumer-centric and sophisticated market. The question is: Are you ready to take on 2025's biggest subscription challenge? 

Join us for State of Subscriptions: Behind the data webinar. Brian Geier, VP Business Intelligence, leaders at Chegg, Lucid Software, Codecademy, and I will discuss our latest research findings and share proven retention strategies for the new era of subscriptions. You really don’t want to miss this. Save your spot now!