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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.
Examples: Iconic Cases
How they do it: McFit’s offers monthly subscriptions to their training facilities. These usually have a fixed minimum term.
Learn more about McFit →
How they do it: Customers who are in need of larger amount of file hosting space, can upgrade their capacity by booking monthly or annual subscription. The more space they require the higher is the price for the subscription.
Learn more about Dropbox →
How they do it: For SAP’s cloud platform, subscription terms start at €399 per month. Customers gain access to a dedicated dedicated SAP HANA instance and other services.
Learn more about SAP →
How they do it: Microsoft used to sell their Microsoft Office programs for a one-time fee. New versions of the software had to be purchased again. However, they introduced Office365, allowing users to subscribe for a monthly or annual fee and always get the latest version of the Office software on their device. This also allows Microsoft to eliminate product CDs but can distribute its software via downloads from its website.
Learn more about Microsoft →
How they do it: Users gain access to all songs on Spotify’s platform for a flatrate, monthly fee of approximately $10 per month. This enables users to access the vast library at any time and without any limits.
Learn more about Spotify →
Below, the top industries for the pattern "Subscription" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 20 firms using this pattern.
Top Industries
E-Commerce
36% of firms using pattern
36% of firms using pattern
Information Technology
29% of firms using pattern
29% of firms using pattern
Services
26% of firms using pattern
26% of firms using pattern
All Industries
Below, the pattern "Subscription" 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
Leverage Customer Data
4 pattern co-occurrences
4 pattern co-occurrences
Two-sided Market
4 pattern co-occurrences
4 pattern co-occurrences
Digitization
4 pattern co-occurrences
4 pattern co-occurrences