A company might see an initial drop in revenue when transitioning to a subscription model because it requires a shift in organizational structure and focus. This includes changes in sales, marketing, finance, and IT teams. The transition also involves creating a service that delivers ongoing value to customers, which might require significant investment. Therefore, the initial expenses might be higher, leading to a temporary drop in revenue.
Subscription services have grown revenues 8X faster than the S&P500 and 5X faster than US retail sal...
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