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Flat Rate 15#
In this model, a single fixed fee for a product or service is charged, regardless of actual usage or time restrictions on it. The user benefits from a simple cost structure while the company benefits from a constant revenue stream.
Examples: Iconic Cases
How they do it: With the establishment of its music streaming service Apple Music, Apple enables customers to stream an unlimited amount of music for a fixed monthly fee.
Learn more about Apple iPod/iTunes →
How they do it: Membership to access McFit’s fitness club facilities costs €19.90 per month. It includes access to every area, as well as the shower fee. Most clubs in Germany, Austria, Spain and Poland are open 24 hours a day, 365 days a week. The customer does not pay for the individual visits, but a flat rate fee is collected in form of the membership fee.
Learn more about McFit →
How they do it: Netflix’s customers pay a monthly subscription fee, allowing users to consume an unlimited amount of content on the platform.
Learn more about Netflix →
How they do it: On Spotify, users are unable to purchase individual songs or albums. Rather, they gain access to all songs on their platform for a flatrate, monthly fee.
Learn more about Spotify →
How they do it: Already in 2000, Verizon introduced nationwide, flat-rate pricing options for consumers and businesses. Today, Verizon customers can subscribe to an unlimited plan (voice, data and text) for as little as $40 per month.
Learn more about Verizon Communications →
Below, the top industries for the pattern "Flat Rate" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 8 firms using this pattern.
Top Industries
Entertainment
25% of firms using pattern
25% of firms using pattern
Services
16% of firms using pattern
16% of firms using pattern
Information Technology
10% of firms using pattern
10% of firms using pattern
All Industries
Below, the pattern "Flat Rate" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
Subscription
2 pattern co-occurrences
2 pattern co-occurrences
Digitization
2 pattern co-occurrences
2 pattern co-occurrences
Affiliation
1 pattern co-occurrences
1 pattern co-occurrences