Digital marketing is taking a big part in how businesses are structured these days. There are a variety of business models that organisations may consider depending on the value they are trying to offer to their customers. Choosing the right digital business model is vital as it can affect how successful an organisation connects with its potential customers. Organisation’s need to understand their customer’s value proposition and base their structure around that. 

The subscription business model is something that has been on the rise in recent years among businesses. Many companies nowadays are “jumping into the subscription space and seeing incredible growth.” A subscription model is when the customer pays a recurring price at regular intervals for access to a product or service. There are many advantages as to why these organisations are adopting this business model.

An example of a successful subscription based business model is Netflix. Netflix offers a wide range of movies and TV shows across different genres. Even though the consumer doesn’t own any of these programs, they are still able to access them anytime. Netflix is the biggest paid streaming service and have over 137 million users. They have grown rapidly in the past 5 years and is expected to continue to grow. 

Despite the fact that the subscription model is highly successful in brands such as Netflix, it may not necessarily work with every business. The way that Netflix is structured allows the subscription model to prosper. 

What other successful subscription model brands can you think of?