The rise of Software as a Service (SaaS) has changed how people access software. Instead of buying it outright, users now pay a monthly fee to use it. This model has been a big hit for companies, bringing in steady income. It has also been convenient for users, who can access software without a large upfront cost. By 2024, most companies that sell directly to consumers will offer subscriptions. Americans spend about $273 each month on these subscriptions. Globally, the number of people using subscriptions has grown quickly, from 53% to 71% in just five years.

However, this convenience comes at a cost. Many people feel overwhelmed by the number of subscriptions they have. A recent study found that 72% of U. S. consumers think there are too many subscription services. This feeling of being oversubscribed is leading to stress and action. Over a third of people feel stressed managing their subscriptions, and many are canceling services. In fact, one in four users quits a service within 30 days of signing up.

The backlash is clear among consumers. High-profile cases show growing frustration with subscription practices. Creatives and hobbyists were among the first to push back. Adobe, for example, moved to a subscription-only model in 2013, and the complaints have not stopped. Users reported bugs, intrusive background processes, and a sense of being locked in. In 2024, the U. S. Department of Justice sued Adobe, alleging hidden cancellation fees and a complicated process. Loyal customers felt stuck with expensive, underwhelming tools.

BMW faced a similar backlash in 2022 when it tried to charge $18 per month for heated seats in some countries. Customers were furious, feeling they had paid double for features already built into their cars. By 2023, BMW abandoned the idea. In the audio space, Waves Audio tried a subscription-only model in 2023 but reversed course within days due to public outcry. Avid Technology, maker of Pro Tools, faced the same reaction and returned to perpetual license options.

It's not just individual users who are pushing back. Businesses are also reassessing their use of SaaS. The average company used 371 SaaS apps in 2023, but by 2024, that number dropped to 220—a 40% cut. Many organizations are consolidating overlapping apps and trimming software spending. SaaS has become a significant operating expense, and CFOs are demanding clearer terms and pay-as-you-go options. Some vendors have moved to usage-based pricing, positioning it as more fair for customers.

SaaS companies rely on keeping customers, but churn numbers show users are walking away. On average, SaaS companies see 4–6% of customers churn every month. Even "healthy" companies often lose 5–10% of customers annually. Cost is a major driver of this churn. Small fees add up, and many vendors make it difficult to migrate data, increasing switching costs and frustration. The promise of constant updates hasn't always materialized, and users feel locked in. With traditional software, you could stop buying new versions. With SaaS, cancel your subscription, and access disappears instantly.

Some vendors are offering alternatives. JetBrains introduced a "fallback license" in 2015, allowing users to keep a version of the software forever after 12 months of straight use. 37signals launched ONCE, a suite of pay-once, self-hosted tools. Their manifesto criticized the SaaS model, highlighting the benefits of ownership.

Vendors are also tweaking their pricing and investing in better onboarding and support. Regulators are stepping in, with the U. S. Federal Trade Commission wanting to mandate "click-to-cancel" functionality. In Europe, new laws could fine companies for failing to disclose renewal terms or making cancellation harder than signing up. The DOJ's lawsuit against Adobe may be the first of several actions targeting problematic subscription practices.

The future of subscriptions is unclear. They aren't going away, but the all-in approach is wearing thin. Successful companies will treat subscriptions like a relationship, not a trap. They will be transparent, flexible, and deliver clear, continuous value. Those that don't? Expect more canceled subscriptions and louder complaints.

SUBSCRIPTION MODEL BACKLASH

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