Subscription Economy and Family Budgets

The article demonstrates that the "subscription economy" is a structural shift in the global economy, where the pattern of accessing services through monthly or yearly subscriptions has replaced outright ownership of products. This model emphasizes building long-term relationships with consumers through stable cash flows, rather than one-time sales. The article also confirms that the market value of this sector ranges between $550 billion and $600 billion, with expectations to surpass $1.5 trillion between 2033 and 2035, driven by rising numbers of subscribers to digital streaming services, cloud computing, and smart services. At the consumer level, individual and household spending on subscriptions is increasing significantly, with the average personal expenditure in the United States around $219 per month, and reaching 450 Saudi Riyals in Saudi Arabia—representing a notable portion of income. While this model offers flexibility and benefits, it also imposes a steady financial burden that consumes a large part of household budgets.

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