A subscription model can initially lead to a drop in revenue and an increase in expenses for a company. This is because the company needs to invest in the necessary infrastructure and technology to support the subscription model. However, once the model is established, it can lead to steady growth. The predictable and recurring nature of subscription revenue can provide a stable income stream. Additionally, the focus on customer retention in a subscription model can lead to increased customer loyalty and lifetime value. However, it's important to note that the impact can vary depending on the specific business and industry.
Subscription services have grown revenues 8X faster than the S&P500 and 5X faster than US retail sal...
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