Article
Inactive consumers in subscription markets
An increasing number of products are sold through subscriptions. In this study we find a high degree of consumer inactivity in subscription markets.
A natural experiment suggests that when consumers are prompted to actively restart a subscription (due to payment card rejections) the number of consumers who decide to cease their subscriptions increases by 70 percent. National consumer surveys confirm that a substantial minority of consumers are passively maintaining subscriptions they no longer use or value.