In addition to CTOs (Chief Technology Officers), CCOs (Chief Content Officers), and CFOs (Chief Financial Officers), SVoD-based companies now have to swap out CEOs (Chief Executive Officers) with CSOs described as Chief Subscription Officers. Why?
In order to deal with a growing subscription economy and its Fount Subscription Economy index.
This subscription economy has created a new type of “streaming fatigue,” which is the effort needed to find a suitable program on streaming services. “Subscription fatigue” describes how tired audiences are of having to subscribe to countless streaming services — many of which they rarely use.
Launched in 2021 by Fount Investment, a South Korean fintech firm, the index is designed to measure the performance of companies engaged in the business of providing subscription services.
The New York City-based consulting firm West Monroe reported that in a survey about monthly subscription expenditures, people guessed that they spent $62 on various subscriptions, when in reality it was $273.
Indeed, Americans have a tendency to spend lots of money on subscriptions they have forgotten about. This subscription economy concerns streaming services, cable TV, magazines and daily newspapers, alarm services, wine deliveries, gym memberships, digital newsletters, and even car wash services.
But the reason for the subscription economy’s existence is mainly attributed to people’s laziness, forgetfulness, carelessness, or the conviction that one day the services will be used.
The result is that the success of some subscription services is due to people’s lack of attention and the Fount’s index provides a good picture into it.