The consumer subscription software industry might not seem like an investment banker’s domain, but few people know it better than Eric Crowley. As a partner at GP Bullhound, Eric has spent the past six years advising top consumer app companies and publishing one of the industry’s most respected reports.
This week on the Sub Club podcast, we sat down with Eric to discuss the findings from his latest Consumer Subscription Software Report. We talked about the future of consumer subscriptions, how AI is reshaping growth, and why the best apps are built for love, not acquisition.
The myth of subscription fatigue
Subscription fatigue makes headlines, but Eric says it’s largely misunderstood. Consumers are more willing than ever to pay for products that genuinely add value. Tools for managing subscriptions have made billing more transparent, and AI-powered apps are creating entirely new categories of utility and entertainment.
As Eric explains, people might cancel the services they don’t use, but they’ll keep paying for the ones they can’t live without. The opportunity for developers is to focus less on quantity and more on building the few apps users truly value.
Runna, Strava, and building for acquisition
Eric also shared lessons from advising Runna on its acquisition by Strava. The deal, he says, worked because both companies created strong standalone products with loyal audiences before coming together. Rather than building with a single buyer in mind, founders should aim to make something consumers love because great products naturally attract acquisition offers.
For Strava, the Runna acquisition expanded its total market by serving runners who didn’t yet identify as “athletes.” For founders, it’s a reminder that integrations and bundles can open the door to new users and new revenue tiers.
AI, app stores, and the next wave
AI is changing everything from app discovery to product development. Search traffic patterns are shifting as users turn to chatbots for recommendations, forcing marketers to rethink SEO and attribution. But the same technology is also helping teams test faster, generate content, and improve retention.
Eric sees another significant tailwind: app stores are finally opening up. With Google and Apple relaxing restrictions on external payments, developers could see 15-20% of margin returned to their bottom line. Add in new opportunities in categories like pet wellness and screen time management, and it’s clear there’s still plenty of room to grow.
Wrap-up
These are just a few of the topics we covered in our conversation with Eric. To hear more on AI, acquisitions, and the future of consumer subscriptions, check out this week’s episode of the Sub Club podcast on YouTube or wherever you find your podcasts.