Subscription Economy
The Subscription Economy is a business model and economic concept where companies shift from one-time sales to recurring revenue through subscription-based services. It emphasizes ongoing customer relationships, predictable revenue streams, and value delivery over time, often enabled by digital platforms and cloud technologies. This model is prevalent in software (SaaS), media, retail, and various service industries.
Developers should understand this concept when building or maintaining systems for subscription-based businesses, such as SaaS applications, streaming services, or e-commerce platforms with recurring billing. It's crucial for implementing features like billing cycles, customer lifecycle management, churn analysis, and scalable infrastructure to support continuous service delivery and customer retention.