Subscription Revenue
Subscription revenue is a business model where customers pay recurring fees at regular intervals (e.g., monthly or annually) to access products or services, rather than making one-time purchases. It provides predictable, recurring income streams for companies and is commonly used in software-as-a-service (SaaS), media, and membership-based industries. This model emphasizes customer retention and lifetime value over transactional sales.
Developers should understand subscription revenue when building or maintaining systems for subscription-based businesses, such as SaaS platforms, streaming services, or membership sites. It's crucial for implementing billing cycles, managing customer accounts, tracking churn rates, and integrating with payment gateways like Stripe or PayPal. Knowledge of this concept helps in designing scalable architectures that handle recurring payments, proration, and subscription lifecycle management.