The digital paradigm shift: a new role for subscriptions in TME.

Subscription-based business models are a key component of today’s Telco, Media and Entertainment business. Digital subscription has completely transformed business models in media industries, while taking traditionally subscription-based businesses, such as consumer telecoms, to the next level. A variety of factors have driven this: from growing access to fast internet at home and on the move to changing customer expectations and behaviours.

The subscription economy is based on the idea that consumers would rather pay for desired outcomes and experiences than invest in product ownership. Research from The Economist Intelligence Unit suggests 80% of consumers prefer new consumption models such as subscriptions and sharing to purchasing outright. In Europe, the Middle East and Africa, subscription businesses have grown 25.6% over the past three years, which is 4% faster than in North America. 50% of Europeans had subscriptions to entertainment services in 2021 and 19% were subscribing to fashion, shopping and beauty services, according to research from N26. A quarter of Europeans (24%) currently have five or more subscriptions and spend €39 euros per month, or €465 per year, on subscriptions.