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Subscription 48#

The customer pays a regular fee, typically on a monthly or an annual basis, in order to gain access to a product or service. While customers mostly benefit from lower usage costs and general service availability, the company generates a more steady income stream.

Apply this pattern to your own business and create your next innovative business model!

Examples: Iconic Cases

How they do it: AWS’ customers subscribe to their services and but are billed on a per-use basis, allowing customers to only needing to pay the cloud computing power which was used by its applications.
Learn more about Amazon Web Services →

How they do it: Today Napster operates as a music streaming service, allowing users to listen to an unlimited amount of music online for a monthly subscription.
Learn more about Napster →

How they do it: Hilti’s ”Fleet Management” allows customers to subscribe to a fixed-term contract with monthly payments to get a defined amount of its latest tools. This contract includes the exchange of tools for the newest models as well as service and maitenance. The customer avoids a upfront investment and has an easy way to budget the tool costs going forward.
Learn more about Hilti →

How they do it: Amazon offers a product called ”kindleunlimited” for its Kindle devices and apps. This entitles the costumer to unlimited access to content such as e-books, magazines and audio books for a flat fee payable every month.
Learn more about Amazon Kindle →

How they do it: Netflix streaming service operates on a monthly subscription model. There are various options and the price is determined by the amount of how many screens can be used to stream in parallel.
Learn more about Netflix →

Apply this pattern to your own business and create your next innovative business model!