It is a good thing that you do not have to subscribe to get the Vulkan vegas no deposit bonus. For other industries, subscription is now the name of the game.
Netflix, Amazon Prime, and Disney Plus — all these are subscription-based platforms. Mobile games also have subscription-based models.
Subscriptions are changing the modern world, and today, we will see why it is happening and what industries are doing it.
Why Is a Subscription Happening?
Money. Money is the only reason businesses charge for subscriptions. In exchange, they provide a multitude of services that are accessible on demand.
A subscription-based model has two advantages:
- Customer attraction
- Consistent revenue.
It is easier to attract customers with subscriptions because they pay less than if you charge them a huge amount. For example, it is better to offer the game for free and then charge $2 per month than sell it for $20.
A subscription payment makes it easier for a customer to manage his finances. If you charge $2 per month, that is not too steep. Every month, the customer earns a salary, and $2 will not put a dent in his pocket.
The customer is happy because he can access the software or program at will. He also knows that he is entitled to upgrades if there are any.
In addition, the customer knows that he can unsubscribe anytime if he does not like the service anymore. This level of control is what makes the subscription model attractive.
The business, on the other hand, will have a steady stream of income. They know that if a customer pays $2, that customer will keep on paying that amount for years.
So, if a business has 1,000 subscribers, the subscription of $2 translates to $2,000 per month, which is almost guaranteed. Should a company opt for a straight purchase, they have to worry about sales every now and then.
What Industries Offer Subscriptions?
Below are some of the most common subscription-based industries:
- SaaS – SaaS stands for software-as-a-service. For example, there was a time when you could buy MS Office as a standalone product. Now, you can only subscribe to it and pay a monthly fee. Many other companies do the same, especially those in the hosting and website development business.
- Streaming – streaming businesses like Netflix and Disney Plus charge a subscription fee. in exchange, they give access to thousands of movies that their subscribers can watch on demand. Other businesses that operate a website do the same. For example, there are health-oriented companies that charge a subscription so you can access their exercise videos.
- Games – many mobile games are free-to-play. However, there comes a point when the game becomes pay-to-win. Instead of merely relying on single purchases, the companies offer their gamers a subscription package where the players receive a daily or weekly stash of in-game goods.
The subscription-based model is not new, but it is becoming a standard. Companies see this as a viable option to have recurring income, which they can reinvest so they can offer more.
Are the Subscriptions Worth It?
The subscription economy is the future. Every year this business model is growing by 200% per year. Even personal grooming companies like the Dollar Shave Club offer it.
There is a subscription-based product for almost everything, and it is succeeding because both businesses and consumers like it.
A subscription makes it easier for a consumer to access what he wants on demand, no matter what the device is. In addition, the consumer also has a choice as regards the types of services he wants to pay for.
For example, Netflix offers several subscription types. All these plans give the customer access to all the movies in a particular region.
However, the higher-tiered plans have higher perks. For example, the highest plan allows you to watch on four to five devices at any time. You can also watch in Ultra HD.
The same thing goes with SaaS. For example, if you subscribe to a hosting service, the highest plan gives you no limit on bandwidth. They also give you unlimited websites.
As a consumer, you may not want unlimited websites, as you only want to build one. As such, you will go for the lowest plan. This is what we call choice in the sense that you only pay for what you need.
The subscription-based model will be here to stay. Companies can earn more revenue and a steady one at that, so it will always be an option. On the other hand, customers have more liberty and control over their financial resources.
In the end, no one can tell if a subscription-based model is worth it. It all depends on the product. For example, you do not really need MS Office upgrades, which means that it is one of those products that a one-time purchase is much better than a subscription-based one.