GP Bullhound Consumer Subscription Software (CSS) Report 2025

San Francisco, 7 October 2025 – GP Bullhound is excited to release the 2025 Consumer Subscription Software (CSS) Report! Explore the trends shaping the future of CSS, from the rise of AI-native platforms and shifting consumer discovery to the rebound in valuations, accelerating M&A, and the proliferation of new category killers. The report also covers the opportunities unlocked by changing app store dynamics, the impact of regulatory pressures on privacy and the growth of new subscription models.

This year’s report also features expert insights from Anushka Salinas (Nanit), Albert Cheng (Chess.com), Emmanuel Arnaud (HomeExchange), Kirsten Green (Forerunner Ventures), Neil Tolaney (TCV), Neil Patel (NP Digital), and Yves Benchimol (WeWard), making it a must-read for businesses navigating the evolving CSS landscape.

Eric Crowley, Partner at GP Bullhound, commented: “Innovation in consumer companies has been incredible to watch. Consumers are falling in love with new AI-native services while legacy CSS leaders are reinventing themselves at record pace. It’s an exciting time to be a founder or investor in this category.”

Market update and trends to watch:

• CSS state of the union: Generative AI is reshaping digital distribution: SEO-driven growth is fading, discovery is fragmenting, and AI-native challengers are rising. At the same time, AI lowers costs, accelerates product cycles, and enables unprecedented personalization. The winners will be those who combine defensibility, trust, and consumer love.

• App stores walled gardens opening up: Following a U.S. federal ruling in May 2025, Apple must allow unrestricted third-party billing, slashing commission fees and unlocking billions in value for developers to reinvest in product and pricing flexibility.

• AI won’t eat consumer tech: While some companies will lose ground to AI-native offerings, CSS businesses that build strong brands, integrate AI thoughtfully, and deliver magical consumer experiences will thrive.

• VPNs under pressure: The UK’s Online Safety Act places new obligations on encrypted services, challenging VPN providers’ core value propositions and pushing them toward bundled privacy/security offerings.

• Another subscription!? Consumers say absolutely: ChatGPT’s premium tiers highlight both the opportunity and the challenge of higher-priced AI subscriptions, as consumers experiment with multiple providers before settling on favorites.

• The bundle is back: Streaming fragmentation is driving the rise of “Cable 2.0” bundles across entertainment, gaming, sports, shopping, and carrier plans, slashing churn and boosting retention.

• M&A deal activity is improving: High-profile deals included Runna’s sale to Strava and Urban Sports Club’s acquisition by Wellhub, alongside continued consolidation across sports, productivity, and health.

• Private financing continues to surge: AI-driven productivity and prosumer tools dominated, with multiple billion-dollar rounds and heavy investment across fintech, health, and edtech

Expert views from company builders:

• CSS flywheel attributes to drive premium valuation: Winner-takes-all dynamics remain the key driver of premium multiples; founders must define their niche and leverage network effects.

• The moat against AI – consumer hardware: Hardware-linked CSS platforms are defending their positions by embedding proprietary sensors, creating structural moats and unique datasets.

• Rise of the App Conglomerate: Multi-product “app conglomerates” are scaling rapidly, leveraging AI-driven prototyping and distribution to mirror the Coca-Cola portfolio playbook.

• Micro-dramas redefining streaming: The rise of ultra-short episodic “duanju” dramas has exploded into a $7b+ global category, monetized like gaming with microtransactions.

• Delete yourself from the internet: A new CSS category is emerging around digital erasure and personal data removal, as consumers demand greater control of their online visibility.

• Celebrities on the cap table: Ambassadors from Ryan Reynolds to Venus Williams are lowering CAC, broadening reach, and reinforcing brand legitimacy across CSS platforms.

• Data – to license, or not to license? CSS companies face critical choices on whether to license proprietary data to LLMs, weighing reach against control and long-term defensibility

Featured leaders in the 2025 report include:

• Anushka Salinas – CEO, Nanit
• Albert Cheng – Chief Growth Officer, Chess.com
• Emmanuel Arnaud – Co-Founder & Co-CEO, HomeExchange
• Kirsten Green – Founder & Managing Partner, Forerunner Ventures
• Neil Tolaney – General Partner, TCV
• Neil Patel – Co-Founder, NP Digital
• Yves Benchimol – Co-Founder & CEO, WeWard

Along with an overview of the current CSS ecosystem, key CSS metrics to watch, and much more.

We invite founders and executives of CSS companies to contribute to our next report by completing this short SURVEY. Your insights will help shape the data and benchmarks for 2026.

Enquiries
For enquiries, please contact:
Eric Crowley, Partner, at eric.crowley@gpbullhound.com

About GP Bullhound
GP Bullhound is a leading technology advisory firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 11 offices spanning Europe, Asia and the US.