Rick Annichiarico

Paid Subscription Trends in 2025: Growth, Retention & Acquisition Strategies

Subscription Trends in 2025 (through May)

Subscription businesses continue booming but the landscape is shifting. Streaming services, music apps, digital news, fitness & wellness and even “subscription boxes” (meal kits, beauty boxes, etc.) all saw strong subscriber growth – but rising competition has driven acquisition efficiency down and made retention a top priority. In 2025, subscription brands must balance savvy growth tactics with strategies to keep members engaged. Below, we break down recent data and tactics across sectors, with actionable insights for marketers.

Subscriber Growth by Sector

Streaming Video: The streaming market is larger than ever. Over 1.8 billion subscriptions exist worldwide in 2025¹, and a staggering 83% of U.S. households now subscribe to at least one paid streaming service. Streaming accounts for 36% of total TV viewing time (outpacing cable and broadcast)【58†】, and total streaming minutes rose 10% in 2024 to over 12 trillion minutes². Platforms like Netflix, Disney+, Prime Video and others continue to add viewers globally, even as U.S. market penetration (about 52% in 2025)³ slows toward saturation.
Music Streaming: Music services are also booming. In the U.S., paid music streaming subscriptions surpassed 100 million in 2024 for the first time⁴. That milestone helped U.S. recorded music revenue hit a record $17.7 billion in 2024⁵. Globally, music streaming grew ~10% year-over-year in 2023⁶, driving worldwide streaming revenues to roughly $19.3 billion by 2023⁷. Today “on-demand” streaming accounts for nearly 89% of all music industry revenue【61†】. In practical terms, music services like Spotify, Apple Music and Amazon Music each now reach well over 80 million subscribers in the U.S. and hundreds of millions worldwide, reflecting the dominance of streaming (versus physical CDs or downloads) in listeners’ habits.

Digital News & Media: Many publishers have seen accelerating digital subscriber counts. For example, The New York Times grew from 9.7 million digital-only subscribers in early 2024 to 10.82 million by Q4 2024⁸ (+11% year-over-year). The Wall Street Journal ended 2024 with about 3.787 million digital subscribers (up 7% YOY)⁹. Other news brands—The Washington Post, Washington Post, and even newsletter platforms like Substack—have similarly crossed multi-million thresholds. A recent audit found 53% of publishers saw digital sub growth in 2024 and 47% plan to prioritize subscription growth in 2025¹⁰. Bundling is also on the rise: 40% of publishers expect growth in print-plus-digital bundles next year¹¹. In short, despite some reader fatigue, consumers are still signing up (and paying) for quality digital content at record rates.
Physical “Subscription Boxes”: Outside media, the biggest growth may be in e-commerce boxes. The global curated-box market (food kits, beauty & wellness boxes, pet supplies, etc.) is projected to jump from about $36.0 billion in 2024 to $41.8 billion in 2025¹² (a 16% year-over-year rise) – and to exceed $87 billion by 2029¹³. Brands like HelloFresh, Blue Apron, Birchbox, Chewy’s autoship and others continue adding subscribers by emphasizing personalization and convenience. In categories like health & wellness, food and apparel, services now often let customers “build your own” box or pick rotating curated selections¹⁴, fueling novelty and repeat purchase. However, many curators also report high churn in this sector, underscoring the need for retention strategies (see below).
Fitness & Wellness: Market Expansion: The global fitness app market is experiencing rapid expansion, with a valuation of $8.1 billion in 2023 and projections indicating it will reach $19.3 billion by 2030, growing at a compound annual growth rate (CAGR) of 17.6%, according to FitPro Software. Within this landscape, revenue from fitness apps alone is expected to surpass $10 billion in 2025, highlighting the sector’s growing profitability. Notably, subscription-based fitness apps demonstrate significantly stronger user engagement, boasting 30% higher engagement rates compared to free exercise apps, reinforcing the value of premium digital fitness experiences.

Across all sectors, a clear shift is underway: retention trumps acquisition. With subscription markets maturing, keeping existing customers is more cost-effective than constantly finding new ones. In fact, one analysis found overall acquisition rates have slid from ~4.1% in 2021 to ~2.8% in 2024¹⁵, even as total subscriber counts climb. Likewise, churn (the flip side of retention) has risen: a benchmarking report found US digital media/entertainment churn around 6.9% annually, whereas digital publishing (news & magazines) churn was ~3.9%¹⁶. (Lower churn in publishing is attributed to higher brand loyalty and less competition relative to streaming.)

Given these pressures, subscription companies are investing heavily in retention features. For example, “pause” options (allowing customers to temporarily halt a box or membership instead of canceling) have surged ~66% year-over-year and now save over half of at-risk subscribers (51.7%)¹⁷. Recurly reports that brands in “digital media” (news, online video, etc.) are re-acquiring about 24.3% of churned subscribers via re-joins or renewed trials¹⁸. Every cohort counts: 71% of subscription companies now offer both monthly and annual plans¹⁹ (giving customers flexible options and often discounted yearly rates to boost loyalty). Other tried-and-true retention tactics are working too. In fact, 70% of would-be cancelers say they’d reconsider if offered loyalty incentives or discounts²⁰. Across industries, companies that double down on rewards programs, Tiered pricing, add-ons and customer service see stronger keep rates. The lesson is clear: once subscribers are onboard, brands must continuously engage them (through relevant content, perks or personalization) to minimize churn.

Acquisition Costs & Marketing Trends

The flip side of shrinking acquisition rates is rising costs to acquire new subscribers (CAC). Competition for attention is fierce, and digital ad prices are high. Marketers report that average ad costs on leading channels have climbed. For example, data from early 2025 shows Facebook/Instagram CPMs around $7.75 (and cost-per-click ~$0.90)²¹. TikTok and Snap have also seen spikes (Snapchat’s CPMs jumped 27% in early 2024²²). Even search and affiliate costs are elevated as big brands outbid smaller players. While precise CAC varies by sector, benchmarks suggest entertainment companies face combined CACs in the low hundreds (around $200–$300)²³. With CAC up, many subscription firms are tightening marketing budgets and re-evaluating ROI. Weaker free-trial conversions and “subscription fatigue” (overchoice) are forcing teams to innovate: content marketing, referral programs, and organic channels (SEO, influencer partnerships) are increasingly important.

At the same time, data-driven targeting is essential. Many firms now track subscriber cohorts closely, using AI/analytics to predict who’s most likely to convert or churn. The 2025 “State of Subscriptions” report notes that effective growth now comes from targeted, personalized campaigns rather than broad advertising splash. For instance, instead of blasting every cold lead, smart marketers focus on lookalike audiences, trial sign-up optimization, and promotions tuned to user behavior. In short, acquisition in 2025 is more expensive but also more measurable – making measurement, testing and creative offers key to improving conversion and CAC.

Growth & Retention Strategies in 2025

To thrive amid these trends, subscription brands are leveraging creative tactics across the board:

Bundling & Flexible Pricing: Bundles are everywhere. Consumers love “more value,” so many brands package products or services together (e.g. streaming tri-bundles, product box combos) or sell at multiple tiers. Recurly found 71% of companies now offer both monthly and yearly plans²⁴. Publishers are bundling print+digital or news+magazine (40% expect bundle revenues to rise in 2025²⁵). Consumer goods boxes allow “mix-and-match” builds²⁶. Flexible plans and bundle savings give customers reasons to subscribe (and to upgrade over time).
Loyalty Programs & Incentives: Retention hinges on rewarding customers. Beyond simple coupons, many subs now include points systems, perks or tiered discounts. For example, brands may offer progressively larger discounts for consecutive renewals, or exclusive gifts after certain milestones. Nearly 70% of consumers report they’d stay with a service if offered a loyalty discount or perk²⁷. Well-executed programs (e.g. one free box after 12 months, or bonus content for long-term members) can significantly improve retention and lifetime value.
Partnerships & Cross-Promotions: Collaborations are growing as acquisition tools. Telecom and retailer bundles are popular – for example, T-Mobile’s April 2025 plan gives customers free Netflix, Hulu and Apple TV+ with certain plans (worth ~$35/month in value)²⁸. Co-marketing deals (like credit-card rewards for subscriptions, bundled software suites, gym memberships with health boxes, etc.) attract new audiences at lower net CAC. Publishers form alliances (news sites offering reciprocal access, newsletter networks sharing audiences) to cross-promote content. Even technology partnerships (smartphone makers pre-install apps, voice assistants integrating services) help tap new subs.
Exclusive Content & Offers: Many brands use exclusivity to excite subscribers. This might be early or bonus content (behind-the-scenes videos for video subs, bonus tracks for music members, or premium articles for newsletter supporters). Physical subscription boxes often include member-only samples or branded swag. Limited-time offers (e.g. holiday gifts for new signups) can both drive short-term conversion and create FOMO buzz. Personalization also falls under this umbrella – tailoring recommendations or custom packages makes subscribers feel seen and increases their loyalty.
Technology & Engagement Innovations: On the operational side, tools like AI and data analytics are helping curb churn. Automated churn prediction models identify at-risk subscribers for targeted win-back offers. Engagement features (like curated playlists, personalized news digests, or “skip a month” pause options) are being rolled out to boost stickiness. Recurly highlights that pause-and-extend features alone have retained over half of customers who might otherwise have churned²⁹. Brands are also using gamification (badges, challenges) and community features (forums, live events) to deepen relationships.

Key Takeaways: Acquisition is harder and costlier in 2025, so focus as much on holding on to subscribers as on finding new ones. Benchmark your CAC and churn against industry data (entertainment CAC ~$260³⁰, media churn ~6–7%). Emphasize flexible plans and loyalty perks, and experiment with bundles or partner deals to cut through the noise. Finally, use data at every step – from trial sign-up to renewal – to personalize the subscriber experience. By combining smart growth tactics with a retention-first mindset (offering value at every touchpoint), subscription marketers can maintain healthy growth even in a competitive landscape³¹.

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