The Sums and Psychology of Subscriptions
The subscriptions model has quickly evolved from utilities to digital and more recently into physical products. Startups are taking on the most locked up sectors with this approach, but how are they doing it?
First pioneered by newspaper and magazines, subscription has now become the business model of the 21st century.
It has spread far beyond utilities such as mobile phone contracts, pay TV and internet access, filtering into every area of consumer culture from music to socks. The mass market consumer has demonstrated a willingness for online sign ups and direct debits for virtually any product.
Subscription-based startups have come crashing into a variety of sectors, changing consumer attitudes and causing havoc with the old guard.
The subscription economy is now so large and accessible that providing the tools and infrastructure for such ventures has become a business in itself. Zuora does just that, and has handled £12bn worth of commerce since launching in 2007.