The ‘Subscription Economy’ Is Growing, And It’s Bigger Than Just Media

[Commentary] We are seeing a larger shift to a subscription economy that means a lot not just for publishers but for all companies.

More and more, our lives are wrapped around subscriptions, and that’s not just in online media. You can now subscribe to software (e.g. salesforce.com), entertainment (e.g. Netflix, cars (e.g. Zipcar), computing power and storage (e.g. Amazon)—you name it. The relationship between people and businesses, and the products and services they use, is no longer a one-time event. The implications of this shift—from an economy based largely on one-time purchases to one based ever more on subscriptions—are profound and ultimately stand to benefit both businesses and consumers. The 20th-century economy was rooted in manufacturing: companies were focused squarely on making and shipping as many tangible goods as possible. Car companies, for example, were measured on how many cars they ship in a quarter. In contrast, modern companies focus on their customers, and focus on building long-term relationships with customers through a set of services.