Business Model - Subscription

This model is most common in the publishing industry, but could be employed with some modifications to other industries as well.

It is pretty common for us as individuals to have "subscribed" to a magazine or newspaper. What does subscription actually mean?

It means I align so much with the content that is being given to me that I do not mind paying for it on a timely (monthly/yearly) basis and ensure that the content provider has a guarantee of that his content would be read and shared with friends and family members on occasions. The Subscription model has to components - of loyalty and of patronage.

A major issue with the model is with the targeting of the content, if the content generated is no targeted, it wouldn’t be of value to the publisher since the audience wouldn't pay for what is not relevant to itself. The publication's pricing is what defines the how the economics of the content based industry works out, the other way these publishing industry generate revenue is use the subscription base to get advertisements targeted at the audience.

This model is also used for delivery of educational and training content for industry. In many ways this model is all about consumption of the content that is of quality.

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