Subscription business model: Difference between revisions

Revision as of 19:43, 18 December 2023

Revision as of 19:30, 22 December 2023

Line 7:

Rather than selling products individually, a subscription offers periodic (daily, weekly, bi-weekly, monthly, semi-annual, yearly/annual, or seasonal) use or access to a product or [[Service (economics)|service]], or, in the case of performance-oriented organizations such as [[List of opera companies|opera companies]], tickets to the entire run of some set number of (e.g., five to fifteen) scheduled performances for an entire season. Thus, a one-time sale of a product can become a recurring sale and build [[brand loyalty]].

Industries that use this model include [[mail order]] [[book sales club]]s and [[music]] sales clubs, private [[web mail]] providers, [[cable television]], [[satellite television]] providers with [[pay television]] channels, providers with digital catalogs with downloadable music or eBooks, [[satellite radio]], [[Telephone company|telephone companies]], [[mobile network operator]]s, internet providers, [[software publisher]]s, [[website]]s (e.g., [[blogging]] websites), business solutions providers, [[financial services]] firms, [[health club]]s, lawn mowing and snowplowing services, [[pharmaceutical]]s, renting an apartment, property taxes, as well as the traditional newspapers, magazines, and [[academic journal]]s.

Renewal of a subscription may be periodic and activated automatically so that the cost of a new period is automatically paid for by a pre-authorized charge to a [[credit card]] or a checking account. A common variation of the model in online games and on websites is the ''[[freemium]]'' model, in which the first tier of content is free, but access to premium features (for example, game power-ups or article archives) is limited to paying subscribers.<ref>{{Citation | year=2023 | title=What is the SaaS Subscription Revenue Model? | url=https://whop.com/blog/saas-subscription-revenue/ | access-date=10 November 2023}}</ref>