Firms That Rely on Subscriptions Showing Resilience, Zuora Reports
Subscription-based businesses are more “resilient” to COVID-19's economic downturn than companies that had to endure supply chain disruptions, reported Zuora. It compared the subscriber acquisition metrics of 700 businesses before and after the pandemic struck in March and found 53.3%…
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had limited impact, while 22.5% had subscriber growth accelerate. Relatively few had subscription growth slowing (12.8%) or contracting (11.4%), said Zuora. Over-the-top video streaming companies had the most growth, up sevenfold in March compared with the growth rate over the previous 12 months, it said. “As people shelter-at-home, streaming services for entertainment have seen a spike in subscription growth.” Consumer IoT is experiencing a slowdown, said the report. Growth there in March was a third of that in the previous year, it said. Consumers under lockdown mandates were “not rushing to buy” IoT devices and services, and companies in the sector “are seeing a decline in subscription sign-ups,” it said.