June 26, 2018
Use of the subscription model has exploded in recent years for physical products of all kinds. But, companies have been selling digital products online via subscription for even longer. Software, like other products that can be delivered digitally, is tailor-made for the subscription model and is on the rise, according to a new report. In the first quarter of 2018, 76 percent of software sales were subscription-based, according to an analysis by online payment provider 2Checkout.
The Atlanta-based company said the subscription model has steadily become the preferred way to purchase software. In 2012, less than half of all software was sold via subscriptions.
“We’ve been tracking these digital commerce benchmarks for years now and it’s interesting to notice clear trends such as the proliferation of subscriptions,” said Erich Litch, 2Checkout’s chief revenue officer. “As companies continue to expand into international markets, they need to be prepared to sell in the ways their end-customers want to buy, support a broad range of payment methods and business models, and sell through multiple channels and touchpoints in order to deliver exceptional user experiences. Understanding trends and buyer preferences is an important step in this direction.”