History, Present, and Future of the Subscription Business Model

History, Present, and Future of the Subscription Business Model

Today, almost every next application uses a subscription model for its digital streaming. Although the subscription model doesn't need any specific introduction, basically you pay some amount of money and unlock premium content on various applications.

From TV shows to music, you can have a subscription to anything you want. In fact, many companies even offer household products and food under their subscription packages. Here, a question arises! How has this subscription model become this successful and popular?

The subscription business model is entirely based on customers' preferences and services. If the services for the customers are good, they stick to the company and become loyal customers by buying the subscription package. That's why keeping the customers happy and satisfied is a necessity in a subscription model.

The subscription models are very effective and bring great advantages for the service provider. And it is expected for the upcoming years, companies with subscription-based business models would experience more success and fame. And that's what we are discussing through this article! In this article, we will cover the history, present, and future prospects of the subscription model. Let's get started!

About Subscription Business Model
History of the Subscription Business Model
The Present of Subscription Business Model
The Future of Subscription Business Model

About Subscription Business Model

Subscription-based business models work on investing in the compounding price of customers' connection and loyalty. Therefore, an immense and continuous source of revenue is formed. As long as the customers will buy the subscription package, the company will continue generating more money.

The subscription revenue model brings a great amount of revenue to the company and also, improve the relationship with customers. This promotes compounding growth that results in a huge loyal customer base.

History of the Subscription Business Model

The subscription business model has come a long way from Western European cities, used for clean drinking water delivery, grains delivery, and even exotic vegetables and fruits. This model has emerged as one of the most significant and famous business models for various retailers and companies in the global market. It is a business model that is bound to change depending upon the market and demand.

In the early 17th century, the subscription business model first came in public appearances and came well-documented. After that, the Subscription business model grew on a larger scale and diversified into broad categories of services and goods.

Then, by the time of the 20th century, subscription packages were available in every sector like newspapers and magazines, and with time, they evolved more promptly and gained importance in the market.

Today, the subscription service business model works by utilizing advanced technology and offering great services to the customers through it.

Which subscription-based news websites people prefer across the globe
The subscription-based news media websites have become popular in recent years. So, Here are Top subscription-based news websites across the globe

The Present of Subscription Business Model

Today, the subscription model has made a very successful image in the market. Many prominent companies have opted for the subscription-based business model which resulted in great success.

When it comes to market share, the business model is attaining acceptance at the global level, day by day. As the financial acumen of people is increasing widely, managing them into smart decisions is very essential. And that's where subscriptions jump in! It convinces people to choose subscriptions instead of purchasing them wholly.

Suppose you decide to buy a car, so instead of purchasing it for long term usage or renting, you can choose a subscription package from the company where you'll get a car within a certain duration of time, and you also have multiple options to change your car model later on. You can upgrade your car model periodically rather than being stuck with an old one. And that's what sells these substitution package deals.

The world is working towards upgrading people's convenience above everything. The subscription business model provides such convenient services to its customers. That's why it is gaining more relevance in the market.

Why Twitter will start a Subscription service for Exclusive Features
As twitter suffered a sharp decline in its ad revenue, it is going to experiment with these new exclusive features for its premium users.

The Future of Subscription Business Model

The subscription model has been around since the 17th century and in such a long period, this model has gained great attention and been co-opted by many top successful companies like Netflix, Microsoft, Salesforce, and Adobe. In the last five years, the subscription business model has received a 100% increase in its revenue, i.e., from $57 million in 2011 to $2.6 billion in 2016.

Formerly, this business model was only used by technology-based companies because of its Software as a service (SaaS). But, today it is associated with every other company. And it is estimated that in the coming future, the Subscription business model will grow even more promptly.

People across the globe are preferring renting or subscribing over owning any goods and services. And this gives a great advantage for companies with the Subscription business model.

From food to heavy equipment, the Subscription business model works everywhere. And this is considered to be the next major shift after the industrial revolution.

It is estimated that in the coming 22nd century, subscribing to goods and services would be more common rather than being the exception.


The subscription model has come a long way ever since its first public display in the 17th century. Market, as well as the customers, have given great attention to the strategies of the Subscription business model.

This has numerous advantages for companies as well as the customers. In the upcoming years, this business model would grow even more widely and bring great results for the companies.


When was the subscription model invented?

The subscription business model was started by publishers of books and periodicals in the 17th century.

What are some of the subscription business model examples?

Amazon Prime, Kindle Direct, Netflix, and $1 Shave Club are some of the famous examples of subscription business models.

What is the subscription revenue model?

The subscription revenue model generates revenue by charging customers a recurring fee that is processed at regular intervals.

The subscription services are getting popular day by day as you can provide your customers high-quality products at affordable prices. Also, it is a great source of recurring revenue.

Must have tools for startups - Recommended by StartupTalky

Read more