I’ll be explaining why subscriptions became such a widespread revenue stream for different media.
This was inspired from my recently new purchase of an ESPN Plus account.
That’s probably the most important thing I wanted to share out this entire post. But with that out the way let’s move on!
Why has subscription become such a widespread revenue stream for different media?
Subscriptions became such a widespread revenue stream for different media because they provide stable and consistent revenue. This business tactic is famously called the subscription revenue model. It’s become one of the most popular options for content creators. However, there have been points made about the disadvantages of this model when compared to a transactional method.
The disadvantages of the subscription model
The disadvantages of the subscription based business model are something to consider.
There’s the need to constantly provide value to the subscribers.
There’s also a high increase in competition because of how popular this method is.
Not to mention there’s also a high cancellation rate which can in fact make the predictability of expected revenue hazy.
It’s most likely to have this confusion during the startup phase because of the fight between the marketer and consumer to prove the product’s benefit.
The toughest point in time for marketers in this scenario is during the initial sign up moment to get the actual commitment from the customer to join.
RealTalkAJ 
Leave a comment