The precarious rise of subscription payments
The COVID-19-induced shock to the world’s largest economy has created a rush of interest in the subscription industry, as millions of captive consumers with almost nowhere to go and plenty of time — and for those employed, plenty of unspent money — on their hands.
Since fewer people are flying, visiting hotels and going to restaurants, consumer entertainment needs are being severely underserved. The see-saw battle of states and cities reopening and then closing, as in cases of California and Texas, has only exacerbated the situation.
The net result is that as more Americans seek to satiate their shopping and entertainment needs, and with fewer options available to them, the subscription industry is stepping up in ways that could not have been predicted at that start of 2020.
But despite this spike in customer demand, the subscription industry, in particular streaming services, is experiencing a very high churn rate due to subscriber fatigue.