From streaming to enterprise software, the subscription boom is losing momentum as users seek greater transparency and flexibility in how they pay. This shift is prompting a rethink of value across digital services and communications. MEF Advisor Nick Millward explains how evolving preferences are reshaping long-standing business models in the mobile and messaging ecosystem.
Consumers and businesses are beginning to question the endless wave of subscriptions. What once felt convenient has become frustrating, with too many recurring fees, unclear value, and rising costs.
As a result, both groups are turning toward usage-based or pay-as-you-go models that make it easier to understand exactly what they are paying for.
The Subscription Fatigue Story
The Great Unsubscribe is not only a reaction to subscription fatigue. It is a reminder that the communications industry, through SMS and other pay-per-use models, set the standard for transparent billing long ago.”
Across markets, the idea of “subscribe and forget” is losing appeal. Research from Deloitte shows that more than half of consumers feel overwhelmed by the number of subscriptions they manage, and almost a third have cancelled at least one in the past year. In the business world, the same pattern is emerging. Productiv’s 2024 report found that the average enterprise used 371 SaaS applications in 2023 but only 220 a year later, a 40 percent reduction as companies seek to consolidate and save.
At the same time, usage-based pricing is proving more resilient. Data from Monetize360 indicates that firms using pay-as-you-go models are growing around 38 percent faster than their subscription-only peers. Even within social and communications platforms, we are seeing the same movement. As noted in MEF’s recent analysis, X (formerly Twitter) has introduced usage-based API pricing to align cost more directly with actual consumption.
The underlying trend is clear. Customers, whether individuals or enterprises, are seeking transparency and flexibility. They want to pay for what they use, when they use it, without the uncertainty of fixed monthly commitments.
Why SMS Has Endured
For MEF members and partners, this shift should feel familiar. The mobile ecosystem has been operating this way for decades. SMS remains the most enduring proof of the pay-as-you-go principle. You send a message, you pay for it. There are no complicated bundles, licences, or hidden terms. That simplicity and fairness have helped SMS remain a trusted and universal channel for business messaging and authentication, even as digital alternatives have emerged.
Mobile network operators continue to charge per message or by volume, and while this structure may appear traditional, its longevity is proof of its strength. In a digital landscape where the ongoing value of many subscriptions is hard to calculate, SMS remains refreshingly straightforward. Spend and outcome are directly linked, and that connection has underpinned the reliability of the channel for more than 30 years.
OTT and Digital Platforms
Interestingly, newer channels are now rediscovering what SMS has always delivered. WhatsApp Business has recently more closely aligned itself to sms pricing in addition to undercutting for some message types. Other OTT and API-driven services, including X and RCS, are doing the same. These platforms are evolving toward the same clarity and accountability that SMS has always offered.
The Broader Lesson for the Ecosystem
As subscription fatigue spreads through both SaaS and CPaaS, MEF’s message to its community is simple: stay confident in what works. The mobile industry has been ahead of the curve for years, offering transparent, usage-based value long before it became fashionable again.
The Great Unsubscribe is not only a reaction to subscription fatigue. It is a reminder that the communications industry, through SMS and other pay-per-use models, set the standard for transparent billing long ago. As the wider tech world now rediscovers these principles, MEF members and partners are already leading by example, proving that trust, clarity, and measurable value never go out of style.
