The revolution of subscription

For over 100 years, the newspapers have relied on the subscription business models. Other industries can learn from their experience and how they can transit to a service-driven business model. Subscription as a service has become so huge that the world is now talking about a subscription revolution.

Subscription is not a new business model, and more and more companies around the world have introduced subscription. Even industries that are clearly seen as one-time purchases have now developed business models where they offer the product as a subscription service. The car industry is one such example, admittedly in our neighboring country – for now. If a car is offered on a subscription, most products can be offered in the same way.

But why is this happening and why now? As mentioned earlier, it is not a new invention.

With the benefits of subscription models

We believe that the model provides both supplier and user (buyer) with many benefits and great value. The supplier gets better predictability and security for revenue generation. The supplier also gets closer relations with the customer, a better foundation for growth and reduced costs. For the customer, the model provides a simple and practical solution, in a user-friendly manner. A subscription is often cheaper than buying stand-alone products.

Better to be a costumer

The customer has more need to find practical solutions. Digitization has created tools and services that have driven more to make customers subscriptions. Global successes like Netflix inspire different businesses to get paid in new ways. Most households subscribe not only to newspapers or magazines (physical and/or digital), electricity and telephony, but a number of different goods and services like food, music, movies, tv, internet etc. The customer will trade in new ways, and providers should take advantage of this opportunity. Infosoft can help both existing and new subscription businesses in times of dramatic change.

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