As the demand for mobile services continues to grow, subscription revenues decline. Mobile services have been primarily paid for through monthly subscriptions, which have been the way to distribute content from the past decade or so.
The rise of smartphones has brought a treasure trove of opportunities and challenges to creators and consumers alike. One of those challenges is subscriptions; subscriptions provide a source of revenue that is slipping away.
What are the solutions? Are there any ways that mobile services can still make money by subscribing?
As the cost of owning a smartphone continues to drop, companies are coming up with new and creative ways to monetize their mobile services.
This includes offering subscriptions, renting out devices, and installing ads on mobile apps.
The advertising industry is expected to grow at a CAGR of 12% by 2023
This will be driven by an increase in ad spending for mobile apps as well as new forms of social media such as Instagram Stories and Snapchat Stories. However, the growth is not expected to be uniform across industries. The ad share of social media is expected to double from $1B in 2018 to $2B in 2023 while the share of ads on mobile apps will only triple from $5B in 2018 to $12B in 2023.
As mobile services become more popular, the number of subscriptions is decreasing.
According to Business Insider, O2 lost over 75% of its subscribers in just nine years. This shows that subscriptions aren’t as lucrative as they used to be.
In order to generate more revenue, companies are making use of ad-based business models where users can watch ads in exchange for premium services and content without getting charged any subscription fee.
A growing number of mobile services are giving up on subscription rates in favor of allowing access for free or a small fee. The mobile industry has seen a surge in the number of companies giving up on subscriptions.
Some see this as a sign that the business model is beginning to change and that there is significant room for improvement.
Mobile services are increasingly becoming a commodity. As companies like AT&T and Verizon rely on revenue from the data they provide, they are more focused on offering more and less expensive plans.
The erosion of mobile carrier subscriptions has been quite the trend in recent years, with many people switching to free or cheaper options. This is one of the reasons why mobile carriers have turned to AI-powered services that can help them offer similar capabilities to their customers at a lower cost.
Mobile subscription revenues hit a record high of $157 billion in 2018, but 2019 has some challenging times ahead.
Mobile services are growing at a rapid pace, with more consumers starting to use them for their daily needs and the impact of subscription-based businesses. The rise of mobile apps assisted the trend by providing an easier way for consumers to get access to these services.
Challenges in 2019:
– Industry consolidation – Mobile subscription revenues hit a record high of $157 billion in 2018, but 2019 has some challenging times ahead.
Mobile subscriptions have risen exponentially with the increasing use of mobile services. However, this growth is going to slow down with more and more people turning towards a device agnostic approach. With the advent of such devices, it has become very difficult for companies to provide subscription-based mobile services and make money while they do so.
This section discusses the revenue of mobile services and whether or not that revenue will decrease in future considering that there are fewer and fewer subscriptions being generated by consumers.
Mobile services bring in billions of dollars every year in revenue. The higher number of subscriptions, the more money these companies can generate. But despite all this good news for mobile service providers, their future is still uncertain as many people are adjusting to a device agnostic approach where they purchase subscriptions from one company for iphone, android, windows phone or another device instead from one company exclusively.
Mobile services have become the norm in this day and age. People like connectivity, socializing, and entertainment on the go. As a result, subscription revenue from mobile services has grown immensely.
Mobile subscriptions are declining in the face of decreased pricing for features and apps that are offered for free by companies (explicitly or implicitly). The drop could be due to consumers adopting a ‘freemium’ model wherein they use a product or service without any cost up-front but pay through ads or commerce.
Mobile subscriptions have been in steep decline and it is expected to hit a record low.
The shift from one-time fees to subscriptions has led to a significant drop in the monthly revenue of mobile services. In order to mitigate this problem, companies have started offering different types of subscriptions for their services.
Mobile subscription models vary from company to company, but some common examples are: pay-as-you-go, post paid, pre paid or monthly installments.