Last year we introduced subscriptions, which means buyers have to renew subscriptions every year if they want to fetch a new updates of items, we posted about how subscriptions work and how this will effect the existing purchased licenses. So today we are writing about the reason we put our head together and decided to introduce […]
Last year we introduced subscriptions, which means buyers have to renew subscriptions every year if they want to fetch a new updates of items, we posted about how subscriptions work and how this will effect the existing purchased licenses. So today we are writing about the reason we put our head together and decided to introduce it in our marketplace.
Many developers around the world work really hard when they build a product and there are plenty of changes and updates required from the date of deployment to current date, a software needs active participation of developer as the technology is changing every day with plenty of threats and insecurities and we are living in an era where different programming languages are competing with each other and the one with greater efficiency will lead the others, But the problems most of the developers face is the time they have is limited, for once these developers are very creative authors always discussing new ideas and working on great innovations that would be useful for more different reasons, with the element of subscription added the authors feel a kind of motivation and see how the users of their products are actively taking part as well and want the product to survive for future, so this way both the developer and the buyer creates a synergy and lead to better end product.
The subscription-based economy has also shifted the way we now consume TV shows and movies. With online-streaming sites such as Netflix and Amazon Prime giving subscribers access to thousands of TV shows and movies at one monthly price, the need for tangible DVDs is no more. Streaming of both music and movie content means that there is no need for any storage what so ever, with the added advantage of high speed internet giving instant access.
Credit Angel’s research shows that in 2012 music streaming stood at roughly 18% however, by 2017 this had increased to 73%, whilst the download revenue had decreased from 70% to 23%, showing a massive change in customer needs.
The success of the subscription-based entertainment industry is changing the way we consume lifestyle goods. With entrepreneurs realising the positives of running a ‘pay as you play’ business, they have begun to implement the concept into their own endeavours. Not only does this concept allow buyers to acquire what they need without having to regularly check out, they are also a great way of building brand loyalty and repeat business.
One of the best examples of phenomenal success in switching to subscription-based services is Adobe, an American software supplier. They changed their marketing strategy in 2013 and increased their customer base by over 10 million in just four years.
In less than four years the Dollar Shave Club have reached revenues of more than $150 million using only subscription-based customers.
Credit Angel’s data shows that it’s millennials that are most comfortable with this new way of shopping with over 70 % having a product subscription and almost 90% having a service subscription. These include all aspects of general household purchasing from personal grooming products to medical items and pet supplies.
It’s thought that millennials are more comfortable with this style of shopping because it’s convenient with no large upfront costs. It also offers flexibility in that you only pay for what you use, making it possible to plan ahead with your finances.