Subscription services have revolutionized the entertainment industry and are now a vital source of income. According to a report from PYMNTS.com, JPMorgan analysts predict that Apple should make $8.2 billion in combined sales of Apple Music and Apple Arcade. The lion’s share of that figure, estimated at $7 billion, would come from Apple’s music, audio and video streaming service, with the company’s gaming subscription service expected to hit $1 billion.
The lucrative online gaming market
Apple Music was launched in 2015, giving subscribers access to 75 million songs for a monthly fee, and the company has been constantly adding new innovations for customers. Apple Arcade first appeared in 2019 and allows subscribers to play over 200 games.
Apple is clearly hoping to grab a bigger share of the lucrative game subscription market, which is expected to be worth $314.4 billion by 2026. Two game companies profiting from the gaming boom are Microsoft, which owns Xbox, and PlayStation. , which is owned by Sony Interactive Entertainment. Both companies offer subscription services: Xbox Game Pass and PlayStation Plus. The Xbox subscription service, which in 2021 surpassed 23 million subscribers, offers subscribers a wide range of benefits, including access to hundreds of games and free game content. PlayStation Plus gives players access to similar benefits, including access to a number of games from its catalog, as well as game trials.
Netflix is a pioneer in the subscription model
Netflix certainly played a part in this paradigm shift. The subscription streaming platform has been the catalyst for the phenomenon of monthly subscriptions as a mode of media consumption. The company started life as a post-DVD rental service, but it was the transition to a streaming service that was a game-changer for Netflix and the film and TV industry as a whole. Netflix has amassed 222 million subscribers worldwide and has a market capitalization of $84.78 billion. However, the streaming service has been losing subscribers lately, leading to rumors of a cheaper subscription model containing advertisements.
The success of Netflix has led to a series of companies launching their own online subscription services. The Sky Group launched NOW TV in 2012 and offers a range of entertainment including Sky Sports Channels, Sky Cinema Channels and Comedy Central. YouTube followed suit in 2017 with YouTube TV, a streaming television service in the United States. BritBox, an online digital video subscription service, which is a joint venture between the BBC and ITV, launched in the UK in 2019 and provides access to popular British sitcoms, soap operas and dramas.
It’s not just the entertainment industry that is experiencing a boom in subscription services: other industries embracing the subscription model include the beauty sector with companies such as Glossybox, which sends monthly subscribers to hair, makeup and skin care products. Additionally, meal prep boxes such as Hello Fresh are also very popular in the food industry.
However, not all industries have adopted the subscription model. A prime example is the online casino industry, which prefers to use other incentives to attract customers, such as casinos that offer the best UK casino bonuses regions, such as deposit offers and free spins. The nature of the industry means that a subscription service would probably not be viable, but the same goes for the online streaming industry and the online gaming industry. Is it possible that there is a change here too? The iGaming industry is renowned for its ability to continuously evolve and innovate. Perhaps we will see some form of subscription service as part of future industry developments with a fixed amount of free bets and free spins in exchange for a monthly fee?
The huge revenue generated by subscription services means that nothing should be ruled out. In fact, the popularity of subscription services across different industries has proven the model to be extremely lucrative and successful.