The Pat Kenny Show Subscription Economy: Are consumers ultimately paying the price?
Mar 29, 2026
Emma Howard, economics lecturer at TUD who studies consumer behaviour, examines the rise of subscription models. She discusses why firms love recurring revenue and how behavioural biases keep people on auto-renew. The conversation covers subscription traps, hardware lock-ins, expanding sectors like cars and software, and tips for managing subscriptions into retirement.
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Subscription Models Create Predictable Revenue
- Recurring revenue makes business income predictable and easier to forecast.
- Emma Howard cites Spotify (84% retention) and Netflix (75% retention) as examples of high subscriber stickiness despite competition.
Status Quo Bias Fuels Set And Forget Signups
- Status quo bias leads people to stick with auto-renewing subscriptions they intended only to trial.
- Emma Howard gives HBO Max's €7 starter offer as an example of small monthly charges that are easily forgotten but add up.
Software Subscriptions Drive Ongoing Revenue Growth
- Subscription models extend beyond streaming into software and vehicle fleets, enabling continuous customer contact and upsells.
- Emma Howard notes software subscriptions show 120% annual revenue retention by adding services and in-app purchases.