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The One-Click Economy

The American Prospect: “You’d think that having subscriptions to three online fitness programs would make me the healthiest person in the world. I have: (1) a Zumba subscription, because until recently, I was an instructor at a local gym and I needed choreography to teach; (2) an Essentrics subscription, because it emphasizes dynamic stretching and elongating your muscles, and doesn’t that sound so delightful; and (3) a Les Mills subscription that I got during the COVID-19 pandemic, because I didn’t want to quit body combat. Do I use all these subscriptions regularly? Heck no! Should I give them up? Probably. Would I like to receive reminders that I subscribe to these online programs, so I can finally decide whether I should lace the sneakers or find the cancel button? Also probably. I’m pretty sure I’m not the only person in North America faced with this dilemma. A May 2021 article from consulting firm McKinsey said businesses offering subscriptions grew by more than 300 percent from 2012 to 2018—and this was before the pandemic forced people to socially isolate and shop for hammers online. According to Statista, a business intelligence firm, subscription revenues from media and digital content are expected to increase by another 13.5 percent between 2021 and 2025, with consumer spending for subscriptions globally estimated to grow as high as approximately $1.26 trillion by the end of 2025. Subscriptions “seem to be models that consumers are really liking. You see retailers moving toward those kinds of models because consumers are responding to them,” said Mike Lemon, vice president of legal affairs for the National Retail Federation (NRF). But while subscriptions can save consumers from the hassle of having to renew wanted services every month, they can pile up, and go months or years without being used or even remembered. Companies can also trick people into enrolling in a subscription, or make it difficult to cancel; this is something that the Federal Trade Commission (FTC) is looking into. And with artificial intelligence and machine learning poised to increase a company’s information advantages, it begs the question of how consumers—and government—should respond to a form of commerce that’s likely here to stay…”

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