On Thursday February 6 we discussed how digital subscriptions are taking over from ownership “There are subscription services for nearly everything: Software, streaming music and video, newspapers, cloud storage, printers and even cars. Many subscriptions are initially affordable, with a teaser low price for the first year or few months. But costs creep up and increase gradually. And while signing up is easy, cancelling can be a nightmare. These days, you don’t own what you buy.”
We kicked off the discussion by watching this video:
Google’s IA search lists key trends in the Digital subscription economy (the list below has been edited by a human being!) :
- Massive Market Growth: The global subscription economy is projected to grow from roughly $556 billion in 2025 to over $1.5 trillion by 2033. https://www.grandviewresearch.com/industry-analysis/subscription-economy-market-report
2.Shift from Ownership: Consumers, especially those using digital media, prefer convenient access over owning. e.g. People subscribe to streaming platforms to watch films and series rather than buying box-sets of DVDs. There are now subscriptions for everything from software to entertainment.
Why We Love Subscriptions
Subscriptions are sticky because they simplify life.
- Accessibility: You don’t need $500 to buy Photoshop, just $20/month to use it. (though the total cost over time could be enormous!)
- Flexibility: If you don’t like one streaming service. Cancel it and try another.
- Updates on the go: Most SaaS platforms update automatically, so you’re always using the latest version.
- Bundling: Companies bundle services (e.g., Amazon Prime includes movies, music, and shopping benefits), making them feel like a bargain.
- Essentially, convenience has become the product.
However, you now have to subscribe to get your car’s software features. e,g BMW: The company still sees a case for charging ongoing fees for software-based features, especially those that need cloud services, data crunching, or regular updates. BMW argues these systems cost money to run long after the car is sold.“
Other major manufacturers are following the same path:
… carmakers are sticking with subscriptions. Tesla still charges monthly for Full Self-Driving (even removing the one-time payment option), though prices have dropped significantly from before. Volkswagen also offers power upgrades by subscription on some of its EVs, while Mercedes-Benz charges yearly fees to unlock more performance in its EQ cars. Mazda, too, has stuck to its guns, keeping connected services behind a paywall even after hacking incidents and bad press. For these automakers, subscriptions remain a tempting source of steady income from customers after leaving the showroom – even if the latter isn’t exactly happy about them.
https://www.autoblog.com/news/bmw-admits-charging-extra-for-heated-seats-was-a-mistake
3. Turning away from way from selling outright: Businesses are shifting to subscription models to ensure predictable long term income. Adobe was a pioneer in this, starting a subscription plan for its software back in 2013. However, all is not plain sailing. Adobe is currently under investigation by US authorities: “the company’s subscription and billing practices have recently come under legal scrutiny. The Federal Trade Commission has filed a lawsuit against Adobe, alleging that the company has been deceiving customers and creating unnecessary hurdles for those attempting to cancel their subscriptions. ” https://www.webpronews.com/adobe-courts-controversy-with-new-creative-cloud-subscriptions/
4. Digital Dominates News Media: Digital-only subscriptions are increasingly dominating, with major publishers seeing digital revenue surpass print. As of early 2026, The New York Times reported continued strong growth in digital subscribers, even as print continues to decline. https://removepaywalls.com/https://www.nytimes.com/2026/02/04/business/media/new-york-times-earnings.html
5. “Subscription Fatigue” & Price Sensitivity: Due to rising costs and market saturation, many people are reviewing their subscriptions and cancelling those they rarely use. However, companies often make a fair bit of money from on-going subscriptions which people have forgotten about.
JCC Members mentioned how Windows 11 is constantly trying to get users to sign up for Office 365 and that complex Windows Powerpoint presentations are difficult to convert to other formats. One solution is to use open source software like LibreOffice which is free. Some so-called “free” software, such as some image editing programs are actually a form of “crippleware”. You can do basic things for free, but have to subscribe to the “premium” version to do anything useful. Others resort to giving users limited access by issuing “tokens” for complex tasks – once the tokens are used up, you can buy more.
However, people are willing to pay a fat subscription for something they really value. e.g. Chris subscribes to both the print and digital edition ofThe Economist. It is very expensive, but she values being able to flip through the printed version…which she owns and can pass on to friends to read! Peter noted that even digital subscriptions are expensive because of the rising costs of journalism.
Some people pay subscriptions for additional cloud storage (Google, Apple Onedrive). It may be worth downloading old data to an external Hard drive, or even getting rid of the big files filling up your cloud storage, rather than paying a recurring fee which will become costly over time.
The Subscription model is here to stay, so if we want to reduce our spend, we had better get used to it and learn to manage and prioritise the things we value most.
Chris Betterton-Jones – Knowledge Junkie.