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Last Week in AI
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HBR.org

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Should Your Subscription Business Use Auto-Renew?
by Klaus M. Miller and Z. John Zhang · 2026-05-15 · via HBR.org
Harvard Business Review Logo

May 15, 2026

Hudzilla/Getty Images

Subscription businesses obsess over pricing and churn, but the most consequential strategic choice may be far simpler: whether subscriptions auto-renew or auto-cancel. Drawing on a 1.4

The subscription economy is one of the most significant business model transformations of the past two decades. It spans media, software, food and beverages, health and wellness, e-commerce, and telecommunications. Total revenues were estimated at nearly $500 billion in 2024 and are projected to exceed $1.5 trillion by 2033. The average American consumer now holds anywhere between seven and 12 paid subscriptions. For executives managing these businesses, the strategic questions are urgent: How do you acquire subscribers profitably, retain them durably, and position yourself against competitors chasing the same recurring revenue?