We're Drowning in Subscriptions

It’s been more than a decade since the Internet generation became accustomed to paid subscriptions with Amazon Prime, Hulu and Netflix. It made sense when Apple Music and Spotify joined in, charging for unlimited music streaming. Some people even got into box subscriptions through the likes of beauty and trinkets box FabFitFun or grooming products box DollarShaveClub.

But the subscription economy has finally gone too far. It has now expanded to include free iced tea with a $11.99 monthly Panera subscription, free delivery of 7-Eleven snacks for $5.95 a month or Chinese-American food from PF Chang’s for a monthly $6.99. It doesn’t end there. Companies from Sweetgreen Inc. to Sephora now offer subscriptions for discounts on orders or free same-day delivery.

If it feels like you’re drowning in subscriptions, you aren’t wrong. It’s hard to keep track and, even if you do, you may eat at Panera a lot less than you thought after the first few months of guzzling free tea. For some companies, that’s part of the calculation, plus there’s the bonus of scooping up data on consumers while having them pay for the privilege of free delivery. What a steal!

For retailers, subscription programs as opposed to free rewards programs make business sense. But at a time when people are cutting back on their spending, retailers have a higher bar to jump to convince stretched consumers to spend extra cash amid all the subscription noise.