Question

what is subscription economy? what type of subscription economy? write as much as possible

Answer 1

Subscription economy is new type of business model that has been emerging lately where the customers subscribe to goos and services they desire to consume instead of owning them. In such an economy the consumers do not wish to own the product, instead they just want to enjoy the services of the product as long as they wish and unsubscribe if they no longer want to consume it. This is unlike the product economy where the business is concerned about selling the product, shipping it to the customer and providing guarantees for the product. Here, the business is interested in having more subscibe to the product and providing good quality services. The customers benefit in a subscription economy since they no longer hold the responsibility of owning and maintaining the product but can discard it whenever they want. The businesses benefit since they always have a set of customers who will subscribe to the product even if others unsubscribe and have assured revenue. The best example of a subscription economy is entertainment service providers like netflix and Amazon prime . These have replaced the selling of video cassettes in the earlier times when the economy was solely product based.