What does subscription mean? An easy-to-understand explanation of the advantages and disadvantages of subscription-based
Posted: Wed Dec 04, 2024 6:54 am
B2B Marketing Subscription What does subscription mean? An easy-to-understand explanation of the advantages and disadvantages of subscription-based businesses
The term "subscription" has quickly become widespread in society over the past few years.
In addition to video and music distribution services, software, media, and e-book services, there are now subscriptions for electric cars , food , clothing , and even list of armenia consumer email mountaineering . Subscription-based services have spread to a wide range of areas, so for young people, "subscriptions" may already be the standard way of doing services.
The subscription market has grown by more than 435% over the past nine years to 2020, according to a Zuora study, and is estimated to reach $1.5 trillion by 2025, according to a recent report from UBS Wealth Management .
This growth doesn't seem to be stopping anytime soon. Therefore, in this article, we will explain the meaning of subscriptions and the advantages and disadvantages of subscription-based businesses in an easy-to-understand manner from both the company's and the user's perspective.
What does subscription mean?
The word "subscription" comes from the English word "subscription." It has multiple meanings, but originally in English-speaking countries it was used to mean "regular subscription," "pre-order subscription," or "membership fee" for newspapers and magazines.
Over time, this has come to be a general term for a business model in which charges are made for using a service for a certain period of time rather than for ownership.
First, the term "subscription" began to be used in reference to IT software, movie and music distribution services, and in recent years, subscription-based businesses have spread to a wide range of industries, including cloud storage, automobiles, housing, and food.
How a subscription-based business works
A subscription-based business is a business model in which you use a service, whether digital or physical, for a set period of time in exchange for paying a regular fee, such as on a monthly or yearly basis.
This is a business model with a different concept from the traditional business model in which you pay money to own a product, or the so-called one-time sale or purchase business, and it is ownership vs. usage.
The term "subscription" has quickly become widespread in society over the past few years.
In addition to video and music distribution services, software, media, and e-book services, there are now subscriptions for electric cars , food , clothing , and even list of armenia consumer email mountaineering . Subscription-based services have spread to a wide range of areas, so for young people, "subscriptions" may already be the standard way of doing services.
The subscription market has grown by more than 435% over the past nine years to 2020, according to a Zuora study, and is estimated to reach $1.5 trillion by 2025, according to a recent report from UBS Wealth Management .
This growth doesn't seem to be stopping anytime soon. Therefore, in this article, we will explain the meaning of subscriptions and the advantages and disadvantages of subscription-based businesses in an easy-to-understand manner from both the company's and the user's perspective.
What does subscription mean?
The word "subscription" comes from the English word "subscription." It has multiple meanings, but originally in English-speaking countries it was used to mean "regular subscription," "pre-order subscription," or "membership fee" for newspapers and magazines.
Over time, this has come to be a general term for a business model in which charges are made for using a service for a certain period of time rather than for ownership.
First, the term "subscription" began to be used in reference to IT software, movie and music distribution services, and in recent years, subscription-based businesses have spread to a wide range of industries, including cloud storage, automobiles, housing, and food.
How a subscription-based business works
A subscription-based business is a business model in which you use a service, whether digital or physical, for a set period of time in exchange for paying a regular fee, such as on a monthly or yearly basis.
This is a business model with a different concept from the traditional business model in which you pay money to own a product, or the so-called one-time sale or purchase business, and it is ownership vs. usage.