Subscription Business Model

  • Users are charged a periodic — daily, monthly or annual — fee to subscribe to a service. It is not uncommon for sites to combine free content with “premium” (i.e., subscriber- or member-only) content. Subscription fees are incurred irrespective of actual usage rates. Subscription and advertising models are frequently combined. Content Services — provide text, audio, or video content to users who subscribe for a fee to gain access to the service. [, Netflix]
  • Person-to-Person Networking Services — are conduits for the distribution of user-submitted information, such as individuals searching for former schoolmates. [Classmates]
  • Trust Services — come in the form of membership associations that abide by an explicit code of conduct, and in which members pay a subscription fee. [Truste]
  • Internet Services Providers — offer network connectivity and related services on a monthly subscription. [America Online, BlueHost]
  • Application Service Providers – Offers web services to its customers on a monthly subscriptions. This could be web services like , or online data backup service like Mozy, carbonite and Backup To New incarnation of ASPs is Software as a Service (SaaS) similar to

Aji Abraham


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