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The potential risks of transitioning to a subscription-based model include customer churn, pricing challenges, cash flow issues, and the need for continuous innovation to retain subscribers. It also requires a significant shift in business operations and may not be suitable for all types of products or services.
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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,...
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How can your company take advantage of the subscription-based model, the most dynamic growth sector of the economy? describes how companies from software-as-a-service to auto manufacturers, music providers to construction equipment manufacturers, are turning customers into subscribers by teasing out the service-level agreement that sits behind the product.
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