The subscription model can initially lead to a drop in revenue and rise in expenses for a company, as seen in Adobe's transition to cloud-based subscription services. However, once established, it can lead to steady growth. The model focuses on the individual customer and their preferences, which can lead to more consistent revenue streams. Expenses may increase due to the need for continuous service provision and customer support. However, these costs can be offset by the predictable and recurring nature of subscription revenue.
Subscription services have grown revenues 8X faster than the S&P500 and 5X faster than US retail sal...
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