Zuora research has found that 70 Percent of Australian and New Zealand businesses plan to shift to a subscription model in the next 2-3 years.
The ANZ wide research conducted by Ovum consisted of two studies looking at both consumer and business trends, and quantified that the average ANZ spend on subscriptions and recurring services is $660 per month, resulting in a market potential of $2.4 billion annually.
Other key findings include:
- Generation - Y (ages 26 - 35) and Baby Boomers (ages 51 - 70) spend the largest proportion of their average monthly disposable income (7 percent) on subscriptions or recurring goods and services.
- In the next two-to-three years, more than half (55 per cent) of ANZ enterprises plan to follow a hybrid direct-to-consumer engagement model, up from 33 per cent in 2016
- Almost half (47 per cent) of enterprises are looking to change their goods and services pricing due to integration of connected life offerings
- The ANZ Subscription Economy is projected to grow in the range of 2.7 per cent annually until 2020.
The study also explores why ANZ consumers are subscribing, what would make them subscribe more, and which industries subscriptions are set to disrupt next – including what businesses can learn from these insights.
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