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Subscription Spend Triples in the UK as Nine out of Ten Consumers Become Subscribers

Community Manager

UK Subscriptions


Writen by @Jayne


New study from Zuora and YouGov finds a rise in automotive, energy and healthcare sectors shifting to recurring revenue models


Zuora, Inc., the leading SaaS provider of subscription order-to-cash solutions, today released a new study in partnership with YouGov which shows an estimated 58 million Brits now subscribe to services – 89 percent of the British adult population – as businesses continue to join the Subscription Economy®.


The Zuora study, ‘A Nation Subscribed,’ reveals that nine in 10 Brits choose to subscribe to their favorite stores, brands and services instead of purchasing them on a ‘one-off’ basis, demonstrating an 11 percent uplift from the previous year’s results. The uptick in adoption has driven the UK adult population to spend on average £56 per month on subscription services, with 35 – 54 year-olds spending the most at £62 every month. Last year’s report found that the average UK adult spends approximately £18.49 per month on subscription services seeing the average monthly spend effectively triple in the past year.


The rise in subscriptions can be attributed to an increase in the number of businesses across nearly all industries offering recurring services. According to the Zuora® Subscription Economy Index™, this business model strategy has proved that subscription businesses grow revenue nearly nine times faster than the S&P 500.


Subscriptions have moved beyond just media and entertainment consumption and have expanded to include grocery shopping services, attracting nearly 2 million[1] consumers, in-car apps counting 650,000[2] subscribers in the UK, and beauty and grooming subscriptions like men’s shaving subscription service, Harry’s, with over 1.3 million[3] British monthly subscribers. Dramatic growth of online data storage services like Google Drive and Dropbox with 7 million[4] UK consumers. The healthcare sector is also experiencing the same shift with 12 percent of British adults choosing to pay monthly for prescriptions and private healthcare services.


What’s more, this trend is set to continue along its growth trajectory as an estimated 25 percent of UK adults predict that they will be subscribing to more services over the next five years.


“Nearly all of the British population is part of the Subscription Economy. From heating to healthcare, Zuora’s new study proves that the subscription-business model has gone mainstream and consumers have bought into recurring payments,” said Zuora’s VP EMEA, John Phillips. “The only way businesses can sustainably maintain relationships with consumers and grow is by moving away from their product-centric mentality and creating long-term brand affinity based around flexible subscription-based services.”


The full results of the YouGov study are explored in full in a new Zuora report released today, “A Nation Subscribed: 2017 State of the UK Subscription Economy” and unveiled at Zuora’s annual Subscribed event in London. The report provides insight for UK companies in all industries about how they can shift and transform business models in line with consumers’ preference for on-demand, personalised, and subscription-based access to services.


Go to https://www.zuora.com/resource/a-nation-subscribed-2017-state-of-the-uk-subscription-economy/ for the full UK Subscription Index, including data on the popularity of specific subscription services available in the UK.



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