Going from single sale products to recurring subscriptions can turn out to be a true success story, and in some cases even set new market standards for how we consume subscriptions.
Most people know about subscription giants such as Netflix and Spotify. When Netflix started, their idea was to rent out DVDs by mail. It wasn’t a very successful subscription service, but with some reinventing of the offered subscription models, Netflix grew into the market-changing video streaming giant they are today. And before Spotify gained popularity, we bought CD’s and LP’s to build our private music collections, or downloaded poorly digitised audio files on questionable websites to store in portable mp3 players with the capacity of holding a very limited number of songs.
Today, the average household uses at least one or more TV streaming subscriptions, and streaming services are starting to outperform broadcast TV. Physical record stores are hard to find, and few homes are displaying a record collection these days. Now we subscribe to streaming music instead, building playlists in our digital accounts with immediate access to infinite libraries of music. With the tidal wave of streaming services supported by the evolution of technology, the way the world consumes media has changed drastically over the last decades.
Not every subscription service can grow into a market-changing giant, but you never know. Everyone has to start somewhere.