Hey guys, Thank You for coming back to my blog.
Today I’m going to discuss about the subscription business model on web. Specifically, on the content services. For you guys who don’t really understand what a content services subscription is, according to the “Business model on the web,” it is a business model that “provide text, audio, or video content to users who subscribe for a fee to gain access to the services.”
The content services of the subscription model are a brilliant transformation from the traditional way of getting information to a new one, in which by technology. How is it brilliant? I agree with Warrilow, ” It’s the perfect business model because it provides the greatest value to both the entrepreneur and the customer,” as stated in ‘Subscription Services: The Perfect Business Model?‘
Last week, I just registered to Netflix and I really enjoy and love how it gives me a lot of movie access by just tapping my Iphone. Moreover, it could be access from anywhere, and whenever you want. Even through PlayStation or your smart TV. Now well I’m a student, and of course I have a budget every month, but Netflix helps to keep me on budget as it gives me free access to all of the movie no matter how many times I want to watch it with only around $9-$14 per month.
Now this doesn’t seem important but actually it is the most important and expensive things that Netflix and other company such as Kogan and Stan, that uses subscription business model offer is time. By subscribing, we don’t need to go down to the store just to buy DVDs, magazine, or newspaper to get the information. With just a simple click on your phones or gadgets you’ll get the information you wanted, which I believe all of you guys would have one to open my blog.
Now from the business side, according to Craig Smith, Netflix have 75 million subscribers. As shown by The Verge it results in a profit of $74 million in the third quarter which was reported on the 14 of October, even though it decreases from a very high amount of $110 million. Using the subscription business model also gives the company a guaranteed revenue, as stated in the “Why you should use a subscription business model.”
The use and invention of the subscription business model has brought the business into another level by giving both value to the customer and the company.
Anyway that’s all for today, cheers!