Earlier this month, Amazon and TikTok announced a new partnership, allowing TikTok users to make Amazon purchases in-platform, without having to access the Amazon website or app. This was the last in a chain of new Amazon platform-native shopping developments, with Amazon having already completed this integration with Meta, and Snapchat. Consumers can integrate their Prime membership into these platforms – viewing live prices, Prime eligibility and delivery – all within the ‘rival’ app. This is one of many interesting new developments in the subscription service market.
Deliveroo has recently revamped its subscription offering to tempt more customers, including an Amazon Prime tie-in offer. Streaming services have also begun focusing on their ‘bundle’ offers, with platforms that were previously rivals coming together to offer consumers a cheaper price if they purchase both services together. In the UK, Sky now offers streaming deals that include Netflix, whilst across the pond US consumers can enjoy various combinations of Apple TV, Peacock, Max, Hulu and Netflix, for less than it would cost to buy each service separately.
We have previously written about the rise of subscription services during the pandemic, and how it puts new businesses from different categories into competition with one another. We identified that demonstrating value and convenience would be key to subscription brands that want to stay on top. The rise in cross-partnerships embraces this, as brands are forming unlikely partnerships to help consumers justify maintaining their subscription roster.
Whilst many businesses have turned to the subscription model to gain and retain customers, three main sectors dominate the market: streaming, retail, and digital subscriptions. Consumers reliably list convenience as one of their main drivers of subscriptions, and cross-partnerships make this all the more true. As the subscription market continues to grow, consolidated subscription management becomes increasingly enticing. According to research by Savanta, 45% of 18-24s would consider switching banks if it meant gaining access to a consolidated subscription management tool, as would 20% of 45-64s.
When it comes to subscription services, we know that consumers value convenience, flexibility and choice. With cost-of-living pressures, almost half of Brits have recently cancelled a subscription due to price increases. However, 60% of Brits admit they would sign up for more subscriptions if they could afford it. Brands that lean into consumer needs, and embrace changing consumption habits, are more likely to come out on top.
