Some potential risks of a subscription model include customer churn, difficulty in predicting revenue, the need for continuous value delivery, and the challenge of managing a long-term customer relationship. It also requires a significant investment in technology to manage subscriptions and billing. Furthermore, it may not be suitable for all types of businesses.

Asked on the following book summary:

resource preview

Subscribed

Subscription services have grown revenues 8X faster than the S&P500 and 5X faster than US retail sales. This new business model is why Adobe, Netflix,...

Start for free ⬇️

Download and customize hundreds of business templates for free

Go to dashboard to download stunning templates

Download

book summary Preview

View all chevron_right

Question was asked on:

Whether for an established company like GE, a streaming service like Netflix, or a new service provider like Box, accessing customer data to create a subscription-based offering is the growth path of the future: companies running on subscription models grow their revenue more than nine times faster than the S&P 500.

Questions and answers

info icon

The subscription model influences market competition by accelerating revenue growth. Companies that operate on subscription models have been found to grow their revenue more than nine times faster than the S&P 500. This rapid growth can intensify market competition as it can lead to a larger market share.

The long-term prospects for companies adopting a subscription model are promising. Companies running on subscription models grow their revenue more than nine times faster than the S&P 500. This growth path is being adopted by established companies like GE, streaming services like Netflix, and new service providers like Box, who are leveraging customer data to create subscription-based offerings.

View all questions
stars icon Ask another question