Subscription Economy Thriving in Australia and New Zealand

December 12, 2016

According to a new survey by Ovum for Zuora, 70 percent of Australian and New Zealand businesses are planning to make the shift to a subscription model in the next two to three years.

The move toward a subscription billing model is supported by new research that shows Australians and New Zealanders spend an average of $660 AUD per month on subscriptions or recurring goods and services, with Generation-Z (consumers aged 14-25) expected to lift the Subscription Economy’s annual market potential in Australia & New Zealand (ANZ) from $2.4 billion to $2.62 billion in the next four-to-five years.

Key findings of the report include:

  • Surprisingly, the silent generation (+71 years) will be the fastest growing adopters of subscription services by 2020, due mainly to the predicted emergence of services such as connected healthcare
  • 65% of businesses plan to spend an average 5 year budget of 0.5M+ (AUD) for the deployment of subscription billing technology
  • Businesses already operating within the subscription economy have room for improvement with 27% of consumer respondents stating that they are dissatisfied with their current subscriptions
  • Small to medium enterprises (SMEs) are driving this shift: Businesses with annual revenues less than $1 billion account for 100% of current subscription billing solution deployments.
  • However, almost 40% of planned deployments in the next two years will be led by business with more than $1 billion in annual revenue

And the subscription economy is leaving no industry untouched:


To learn more about the mass migration of Australian and New Zealand businesses to a recurring billing model, download the free full report: ANZ Subscription Shift.