During the first COVID-19 lockdown, subscription businesses witnessed unprecedented growth. From coffee to cars—nothing was off-limits, and subscriptions went from a revenue strategy to a movement. Thanks to the unlimited supply of recurring revenue adrenaline, investors’ love for subscription businesses only grew by leaps and bounds. Then suddenly, the world woke up from its stupor.
The undeniable king of pandemic subscriptions—Netflix—lost subscribers for the first time in 10 years in Q1, a whole 200,000 of them!. And more recently, top direct-to-consumer (DTC) and online retailers have also struggled with the steadily declining visitor traffic. Subscription fatigue was no longer just a hypothesis.
