Spoiler alert: Subscription Model isn’t going away!
Welcome to the world of ownership to access, literally meaning u ain’t owning anything, you are just renting for the service!. At its core, the subscription model revolves around customers paying a recurring fee—typically monthly or annually—for access to a product or service. If you’ve noticed that your credit card bill seems to be growing at the same rate as your Netflix/Amazon Prime recommendations, trust me bro, you’re not alone. Subscription models are popping up everywhere, from the software you use to edit your photos, to the socks that magically appear on your doorstep every month (we see you, sock subscription service). You can’t escape them, and frankly, neither can businesses—because this model is eating the world. And, like that bag of chips you promised to save for later, it’s not stopping until it’s finished the whole darn thing.
So, why is the subscription model taking over our lives, and more importantly, our bank accounts? Let’s break it down, shall we
Investors Love It!
Subscription models provide consistent revenue, making them attractive to investors and easier for companies to scale because consistency is key and you get to predict the growth and expand with certainty. Unlike Traditional business models where sales are cyclical or dependent on large one-time transactions, subscriptions create a steady stream of income. Giants like Adobe, Microsoft, and Salesforce, have successfully transitioned to subscription-based models, now benefit from more stable stock prices, higher valuations, and better overall growth metrics. The up-sell in the subscription model makes it more attractive and acts as cherry on the cake.
How to Spy Legally via Data!
Businesses “LOVE” collecting data on you (just enriching your experience), and with subscription models, they’ve hit the jackpot. Every click, purchase, and “What’s new on Netflix?” question is data that helps them optimize their services and make sure they’re always one step ahead of your wants and needs.
Take Spotify, for example. They know that the moment you press “skip” on a song, they’ll serve you something a little closer to your musical soul. And that, my friend, is data at work (for nerds, you figured it out, “the algorithm”). They know your preferences so well that it’s borderline creepy. But hey, you get personalized playlists out of it, so who’s complaining?
The Exclusives The Deal!
Remember the good old days when you’d pay for a phone, and it would be yours, like literally you own it well? Well, Apple decided that was far too simple. Instead, you can now pay for an iPhone, iPad, or MacBook and sign up for a subscription service to “own” it. Yes, the very own “Apple’s iPhone Upgrade Program”, where you can pay a monthly fee for the privilege of swapping out your iPhone every year. Sounds like a great deal, right? You pay for the phone forever, but every 12 months, Apple will graciously let you trade it in for the latest model (such a noble thought).
The Dark Side : A Dagger in the Heart of Your Wallet!
Too many subscriptions not just your regular entertainment OTT’s, the spectrum keeps getting big right from Saas subscriptions (Microsoft bundle) , Gym subscriptions which you don’t use, Replenishment Subscription Boxes (Amazon Subscribe & Save) or even food subscriptions ( variant version of swiggy one membership or fresh to home membership). Diverse industries, including software, beauty, fitness, and education, are adopting subscription models successfully.
Let’s be real: subscription fatigue is real. You know it, I know it, we all know it. At first, having a subscription for everything feels exciting—new shows to watch, new products to try, new apps to “enhance” your life. But after a few months, you start feeling like you’re drowning in a sea of recurring charges hurting your bank balance.
The Subscription Model’s Next Big Move: World Domination (Duh)!
Well, it seems like the subscription model is poised to take over everything, and I mean “everything”. There are already subscription services for things like socks, books, shaving razors, coffee, and even…pets. In the near future, you could be subscribing to your food delivery, your pet’s happiness, your fitness routine, your office software, and your Netflix account—all at once. Just imagine: instead of buying a car, we’ll just subscribe to one. Forget owning things—just rent everything forever!
The Conclusion
The subscription model is the business version of a clingy partner who refuses to let go—and the businesses love it. They’re making bank with that recurring revenue, and you, dear consumer, are making those monthly payments like a champ. Sure, it’s convenient, it’s customizable, and it feels like a modern-day miracle of consumerism—but at the end of the day, it’s also quietly siphoning money from your wallet(legally). So, the big question !! will subscriptions eventually eat the world? Probably. Will your bank account survive? Well, that’s entirely up to you.
Now, who wants to sign up for my “Mystery Blog Post Subscription” for only Rs.100 a month? what are you waiting for!! go subscribe (wink wink!!)