This document outlines the methodology and structure of market reports focused on subscriptions and recurring payments, particularly in North America. It emphasizes the use of secondary market research, various data sources for accuracy, and distinct definitions of key terms related to e-commerce and subscriptions. The report aims to provide comprehensive insights into market trends, consumer preferences, and statistical data for the subscription market in the United States and Canada.

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GENERAL METHODOLOGY OF MARKET REPORTS
Secondary Market Research
 The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are
based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and
company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for
reported data. As a result, companies gain a precise and unbiased impression of the market situation.
 Cross referencing of data is conducted in order to ensure validity and reliability.
 The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several
sources. If this is the case, all sources are mentioned on the chart.
 The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.
Definitions
 The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact
definition used by the source (if available) is included at the bottom of the chart.
Chart Types
 Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main
idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time
period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple
answers were possible, which is noted at the bottom of the chart.
Report Structure
 Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,
management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When
available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional
reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.
Notes and Currency Values
 If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In
some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.
 When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR
values are also provided in brackets. The conversions are made using the average currency exchange rate for the respective time period. Should the currency
figure be in the future, the average exchange rate of the past 12 months is used.

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METHODOLOGY OF THE CURRENT REPORT
Report Coverage
 This report covers subscriptions and recurring payments markets in North America, including United States and Canada. The report contains relevant
information about the current state of the markets in the region, market trends, subscription sales and shares, and consumer and business preferences. Not all
types of information were included for each country, due to varying data availability.
Report Structure
 The report opens with a global chapter. It includes information on the global subscription and recurring payments market development and projections, top
market trends, consumer choices and other relevant data points.
 In addition to market data, the global chapter also includes information on the various subscriptions business models, their benefits, and well as key metrics to
consider when offering subscriptions to customers
 The rest of the report is devoted to countries of North America, namely United States and Canada. Depending on data availability, the following types of
information were included: market revenues, consumer spending, penetration rates, key types of subscription, subscription providers, recurring payment service,
providers, etc.

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DEFINITIONS
 B2C E-COMMERCE
the sale of products (and services) through electronic transactions via the Internet from businesses to
consumers (B2C). A broader definition of retail E-Commerce applied by some sources also includes consumer-
to-consumer (C2C) sales.
 E-COMMERCE SALES
the total sales generated either on the E-Commerce market in a certain country or region, or the total sales
generated through E-Commerce by a player on the market.
 INTERNET USERS the total number of inhabitants in a certain country that regularly accesses the Internet.
 ONLINE SHOPPERS the total number of inhabitants in a certain country or region that participates in B2C E-Commerce.
 SOFTWARE AS A SERVICE (SaaS)
a software licensing and delivery model in which software is licensed on a subscription basis and is centrally
hosted.
 CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
a process in which a business or other organization administers its interactions with customers, typically using
data analysis to study large amounts of information.
 DAYS SALES OUTSTANDING (DSO)
a measure of the average number of days that it takes for a company to collect payment after a sale has been
made.
 SUBSCRIPTIOIN BUSINESS MODEL a business model in which a customer must pay a recurring price at regular intervals for access to a product.
 RECURRING PAYMENTS
a payment model where the customers authorize the merchant to pull funds from their accounts automatically
at regular intervals for the goods and services provided to them on an ongoing basis.
The following expressions and definitions are used in this market report*:
Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available,
is included on the respective charts

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1. Management Summary
2. Global Developments
• Subscription Market Sales, in USD billion, and Year-on-Year Change, in %, 2020 – 2025f
• Consumer Spending in Top 100 Subscription Applications, by App Store and Google Play Store, in USD billion, 2019 & 2020
• Key Metrics for a Subscription Business, October 2020
• Key Benefits of a Subscription Business, October 2020
• Top E-Commerce Subscriptions Business Models, November 2020
• Top Purchased Subscription Categories, in % of Respondents, May 2021
• Frequency of Adding a New or Renewing Existing Subscriptions, in % of Respondents, May 2021
• Top Purchased Subscription Categories, in % of Respondents, May 2021
• Top Factors When Choosing a Subscription, in % of Respondents, May 2021
• Preferred Payment Methods for Subscription Contracts, in % of Respondents, May 2021
• Share of Respondents Who Prefer Automatic and Manual Subscription Renewals, in %, May 2021
• Breakdown of Preferred Pricing Models, in % of Respondents, May 2021
• Top Reasons to Cancel Subscriptions, in % of Respondents, May 2021
• Annualized Subscription Economy Revenue Growth Compared to the S&P 500 Revenue Growth, in %, Q4 2019 – Q4 2020
• Annualized Subscription Economy Average Revenue Per Account Growth Rate, in %, Q4 2019 – Q4 2020
• Payment Options Available for Recurring Payments, by B2B and B2C Companies, in % of Payment Decision-Makers, September 2020
• Technologies Used to Handle Recurring Payments, in % of B2B and B2C Payment Decision-Makers, September 2020
• Percentage of Customers with Failed Payments that Turned into Churn, by B2C and B2B, and B2B Only Companies, in %, September
2020
• Implications for B2B & B2C Businesses from Recurring Payments Fails, in % of Payment Decision-Makers, September 2020
• Investment Plans Regarding Recurring Payment Service Providers, in % of B2B and B2C Payment Decision-Makers, September 2020
• Benefits of Adopting a Recurring Payment Solution, in % of B2B & B2C Payment Decision-Makers, September 2020
TABLE OF CONTENTS (1 of 2)

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TABLE OF CONTENTS (2 of 2)
3. North America
3.1. United States
• Paid Subscriptions Market Revenue, in USD billion, 2019 & 2020
• Consumer Spending in Top 100 Subscription Applications, by App Store and Google Play Store, in USD billion, 2019 & 2020
• SVOD Revenue, in USD million, 2019 & 2020e & 2025f
• Share of Adult Consumers Who Have Select Types of Subscriptions, in %, February 2020 & July 2020 & February 2021
• Features That Subscription Merchants Provide, by Provider’s Index Score, incl. Top 30, Middle, and Bottom 30, in %, February 2021
• Limited Tier Paid Subscriptions Market Revenue, in USD million, 2019 & 2020
• Share of Paid Subscriptions, in % of Total Music Retail Revenue, 2020
• Annual Average of Paid Music Subscriptions, in millions, and Y-o-Y Change, in %, 2016 - 2020
• Number of Streaming Services in Use, in % of Adults, April 2020 & December 2020
• Per Month Average Payment for All Streaming Services Combined, in USD, April 2020 & December 2020
• Average per Month Spending for Subscription Services, in USD, by Age Group, September 2020
• Top 7 Streaming Services Subscribed or Have Access to, in % of Adults, April 2020 & December 2020
• Subscription and Select Internet Activity, in % of Consumers, February 2021
• Top Payment Processors for Recurring Payments, incl. Overall, Pricing & Contract, Recurring Payment Types, General Features, and
Expert Scores, May 2021
• Top Payment Processors for Recurring Payments, incl. Pros, Cons, and Recurring Payment Features, May 2021
3.2. Canada
• Share of Respondents Who Has Subscriptions for Physical Goods, in %, March 2021
• Share of Consumers Having Certain Number of Subscriptions, in %, April 2020
• Estimated Change in the Number of Subscriptions in the next 12 Months, in %, April 2020

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1. Management Summary 9 – 11
2. Global Developments 12 – 33
3.
3.1.
3.2.
North America
United States
Canada
34 – 55
35 – 52
53 – 55

10. 10
14%
9%
5%
10%
18%
0%
5%
10%
15%
20%
25%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
in
%
Globally, in Q4 2020 (18%), the subscription economy revenue
per account growth rate surpassed the Q4 2019 (14%) rate.
Global: Annualized Subscription Economy Average Revenue Per Account Growth Rate, in %, Q4 2019 –
Q4 2020
Source: Zuora, March 2021

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Have Subscribtions for
Physical Goods
16%
Other
84%
Just over one in six Canadians (16%) relied on the Internet for online
purchases of physical goods through subscriptions, as of March 2021.
Canada: Share of Respondents Who Has Subscriptions for Physical Goods, in %, March 2021
Survey: based on a survey that targeted all persons 15 years of age and older living in ten provinces of Canada, conducted between November 2020 and March 2021
Source: Statistics Canada, June 2021

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