subscription model
Pay per period
A subscription model is a business arrangement where customers pay recurring fees—monthly, yearly, or otherwise—for ongoing access to a product or service.
Software companies have largely shifted from one-time purchases to subscription models: Adobe moved to a subscription model in 2013.
The approach now extends to everything from streaming services to razor blades to meal kits.
- free trialComplimentary introductory access
- streaming servicesOn-demand video delivery platforms
- bundle dealDiscounted grouped purchase
- open accessFree public scholarly content
- SaaSRemotely hosted software access
churn rate · cancel anytime · tiered pricing · annual plan · cancel · e-commerce platforms · paywall · auto-renewal · loyalty programs · advertising revenue · passive income · subscriber count · e-learning platforms · unsubscribe · upselling · monthly · membership fee · onboarding process
- streamingNetflix, Hulu, streaming, stream, YouTube
- digital economye-commerce, digital payments, online shopping, digital marketplace, digital markets
- healthcare systemshospital system, public hospitals, health plan, HMO, single payer
- book tradebook dealers, bookselling, bookseller, publisher, bookshops
- business trendsagile, AI, analytics, big data, blockchain
- Customer Engagementloyalty programs, customer loyalty, customer retention, retention, brand loyalty
subscription modelone-time purchase
Single payment acquisition
pay-per-use · à la carte · pay-as-you-go · upfront payment · microtransactions