A new report on the subscription economy has revealed Australian subscription companies grew revenues 10 times the rate of the ASX sales-per-share index.
The report by Zoura found that over a seven year period, from 2012 to 2018, the companies featured in the study saw their sales grow by more than 300%, representing an 18% compound annual growth rate.
Zoura, a cloud based subscription management platform, collects data on subscription companies and measures the growth of the sector.
Zoura founder and chief executive Tien Tzou said: "The subscription economy has been a leading indicator of broader economic trends for the past seven years."
"For the first time with the subscription economy index, there is data suggesting that the growth of subscription revenue tracks ahead of the US Gross Domestic."
The company believes there are strong indications that Australian subscription service companies will experience similar success.
Zoura vice president and general manager of the Asia Pacific region, Iman Ghodosi, said: "We've been doing a lot of evangelising for the last seven years in Australia, and it's paying off."
"More and more Australian businesses are seeing subscriptions as a strategic part of their business growth."
He said the growth of the subscription economy can be seen as a new way of consumers doing things differently: "It's a shift from a product and company focused economy to a service and customer focused economy."
Ghodosi said he wasn't surprised to see subscription companies achieved 10 times the growth of the ASX index.
"Subscription companies adopt a flexible IT architecture from day one, allowing them to quickly penetrate international markets, accept global payments, and measure financial growth and to iterate over time," he said.
"In other words, they're born free of the limitations of the product economy and the customer is at the centre of everything they do."