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.
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.
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How they do it: LinkedIn limits the use for regular users. They still have access to a wide range of functions but are limited in certain factors. E.g. the possibility to search other profiles is capped for free users. Premium users who pay an annual or monthly fee however can search for other profiles without limit.
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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.
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How they do it: Netflix’s customers pay a monthly subscription fee, allowing users to consume an unlimited amount of content on the platform.
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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.
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