Business

NY Times hits 10 mn-subscription mark amid growth spurt

The New York Times reported Wednesday that buying The Athletic had helped power the paper past its 10 million-subscription target years in advance, and the company is now aiming to grow by millions more subscribers.

Business

Netflix stock plunges as subscriber growth worries deepen

Netflix delivered its latest quarter of disappointing subscriber growth during the final three months of last year, a trend that management foresees continuing into the new year as tougher competition is undercutting the ...

Internet

YouTube Music tops 50 million subscribers

YouTube's music streaming service reported Thursday it now has more than 50 million subscribers, saying it is growing quickly as it tries to close the gap with market-leader Spotify.

Business

Spotify posts rare profit, shares tumble on timid user growth

Spotify posted on Wednesdaya rare net profit in the first quarter and a sharp increase in paid subscribers as the music streaming giant launched in dozens of new markets, but disappointing total users sent shares tumbling.

page 2 from 5

Subscription business model

The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The model was pioneered by magazines and newspapers, but is now used by many businesses and websites. Rather than selling products individually, a subscription sells periodic (monthly or yearly or seasonal) use or access to a product or service, or, in the case of such non-profit organizations as opera companies or symphony orchestras, it sells tickets to the entire run of five to fifteen scheduled performances for an entire season. Thus, a one-time sale of a product can become a recurring sale and can build brand loyalty. It is used for anything where a user is tracked in both a subscribed, and an unsubscribed status. Membership fees to some types of organizations, such as trade unions, are also known as subscriptions.

Industries that use this model include book clubs, record clubs, telephone companies, cable television providers, cell phone companies, internet providers, pay-TV channels, software providers, business solutions providers, financial services firms, fitness clubs, and pharmaceuticals, as well as the traditional newspapers and magazines.

Renewal of a subscription may be periodic and activated automatically, so that the cost of a new period is automatically paid for by a pre-authorized charge to a credit card or a checking account.

A common model on web sites, colloquially becoming known as the freemium model, is to provide content for free, but restrict access to premium features (for example, archives) to paying subscribers. In this case, the subscriber-only content is said to be behind a paywall. The razor and blades business model (also called the bait and hook model) is an attempt to approximate the subscription model, but with a formal agreement by both parties.

This text uses material from Wikipedia, licensed under CC BY-SA