Subscription Model

Digital Business Model

 

A common retail business model in the digital era, the subscription model offers a product or service on a continual basis for a recurring charge. Subscriptions are a common pricing option for online services and media companies, with recurring charges that can occur annually, monthly, weekly, or even daily. With this model, companies look to improve their cash flow through automatic payments, while providing greater value over time. In many cases, subscriptions also provide an easy foot in the door with customers hesitant to pay a high initial price to try a service.

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