Uncovering the mystery of the “subscription economy”: from price competition to experience improvement
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When you think of “subscription”, what immediately comes to mind? Newspapers, magazines, cable TV (Channel 4)? Or spend 149 yuan a month to subscribe to an online music streaming service?
Have you ever thought that the field of “subscription” is no longer limited to tangible commodities such as newspapers and magazines, but can also be combined with the concept of fundraising, so that the public can support their favorite opinion leaders or [Internet celebrities] through the power of “subscription” (https://udn.com/news/story/7088/2318058).
For example, the well-known YouTuber 囧星人 recently worked on [PressPlay platform](https://pressplay.cc/project/ab out/%E3%80%8A%E5%9B%A7%E8%AA%AA%E6%9B%B8%E3%80%8B-+%E6%8E%A8%E5%BB%A3%E9%96%B1%E8%AE%80%E7%9A%84%E7%BE%8E%E5%A5%BD%E F%BC%81%E5%B8%B6%E7%B5%A6%E4%B8%96%E7%95%8C%E6%9B%B4%E5%A4%9A%E7%9A%84%E6%99%BA%E6%85%A7/E43821EA954138B32BAE74C72BB 6E227) launched an online program “囧故事书” with the purpose of promoting reading, and actively solicited subscription donations from everyone. Monthly subscription plans range from NT$80 to NT$1,800, allowing fans to choose according to their abilities and wishes. As a result, the estimated fundraising goal of NT$200,000 was reached within one day. As of noon on March 17, the accumulated amount has reached 405,000 yuan, and the achievement rate is as high as 202%. It can be said to write a new page in the history of Taiwan’s “subscription economy”.
Ji Xingren is not a special case. The previous Scumbag Text, [Adi English](https://www.youtube.com/ Creators such as channel/UCeo3JwE3HezUWFdVcehQk9Q) or image and text do not match have also achieved amazing results on different platforms. Subscription (Subscription) is actually not a new thing, it can even be said to be an old business model, but why has it set off a wave of craze in recent years? Now, let us unveil the mystery of the “subscription economy”!
According to Wikipedia, the subscription model was first pioneered by organizations that publish magazines and newspapers. Consumers must pay a certain fee to obtain goods or services. As for the popular online subscription model today, it refers to an e-commerce model in which companies provide consumers with direct online subscription or browsing information through websites.
As for online subscription, common sales items include electronic newspapers and magazines, cable TV programs, etc., as well as digital content services, online publishing, and online entertainment. Consumers pay online, and companies regularly send relevant information or services to users.
Looking at the core of the subscription model, it can be regarded as a financial concept and interest relationship between consumers and enterprises. However, with the evolution of the times, the content provided by companies has gradually transitioned from “goods” to “services”, and what consumers get after paying the fee is mostly the “right to use” of the “goods” or “services” rather than “ownership”.
Based on the advancement of technological civilization and changes in consumer behavior, modern enterprises and consumers are increasingly favoring subscription services instead of traditional buyout transactions. For consumers, it is a great deal to obtain services at cheaper and more reasonable prices; for enterprises, it also allows them to focus more on providing high-quality services to customers, while eliminating other unnecessary product development and resource consumption.
Take the well-known online music as an example. As long as people pay 149 yuan per month to local manufacturers such as KKBOX or myMusic, they can listen to many classic and moving music according to their own interests from the legal music database authorized by these companies and major record companies. Although consumers cannot directly download music to their computers, accessing it through streaming does not hinder everyone’s music enjoyment experience. Because this is an economical and affordable business model, the development of digital content subscriptions has been booming in recent years and has become a trend.
Zuora, an information service company that specializes in subscription billing in the United States, is a company that specializes in providing comprehensive solutions for enterprises to transform into subscription systems. They were the first to propose the term “subscription economy” and advocated that the subscription model is the future of shopping. The company’s CEO Tien Tzuo said, “Through the promotion of subscription economy, SaaS (Software as a Service) The relationship between a company and its customers.”
In other words, the subscription model has been upgraded from the traditional process of exchanging money for goods to a relationship between fans and members. Zuora also mentioned that in the process of developing subscription economy, it is not enough for each company to provide its own products or services, but also needs to manage multi-party relationships with customers more delicately and properly.
[Business model] based on subscription system (https://www.fuelup.today/search/label/%E5%95%86%E6%A5%AD%E6%A8%A1%E5%BC%8 F?max-results=12) is quite diverse. In addition to the sale of newspapers, magazines, cable TV programs, cosmetics, and online music, there are now also subscription plans that integrate the spirit of crowdfunding, fundraising, and sponsorship, which undoubtedly opens up a new business landscape.
With [scum text](https://www.facebook.com/%E7%89%B9%E6%80%A5%E4%BB%B6%E5%B0%8F%E5%91%A8%E7%9A%84%E4%BA%BA%E6%B8%A3%E6%96%87%E6% 9C%AC-526175220750138/) is an example. This scholar who was born in an academy is full of ideals and ambitions. The ultra-small media “Zhazhi” he wants to create is not easy to gain recognition from the traditional market. The reason why he was able to obtain 1,645 subscriptions in one fell swoop is simply due to his long-term accumulation of writing work. He not only won the favor of many fans, but also gained sufficient recognition and voice on the Internet. Therefore, when he announced his plan to publish about 50 to 60 online articles and 2 issues of paper magazines every year, hundreds of netizens were willing to pay to subscribe.
It all comes back to the idea ofidentity–whether consumers are ready to shift their identities from “owners” to “subscribers”. When a company makes their lives easier, the answer is invariably yes.
Shifting from the traditional sales model to the subscription economy not only uses a completely new way of thinking to promote business, but also a way to get closer to customers. The focus of the “subscription economy” is mainly focused on the essence of serving customers. Compared with caring about the price of goods or services, consumers are more concerned about the value that a company can bring and their experience in using it. This is why the “subscription economy” is fascinating.
★ Photo Credit: unsplash.com
★ Article source: This article was originally published in the April 2017 issue of “English Island” magazine
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