Netflix, Canva, Masterclass, Medium, HBO Max, Spotify, Quartz, LinkedIn, etc. my list is exhaustively long. A quick look at my monthly bill gives away my weakness of pressing the "subscribed" button.
What is going on? What is the reason behind the rise of subscription services?
I picked up "Subscribed", a bestseller by Tien Tzuo to decode the subscription model economy. I was a bit skeptic, to begin with — Tien Tzuo is the CEO and co-founder of Zuora, an evangelist of the subscription economy. As Mark Twain said, to a man with a hammer, everything looks like a nail. A thought leader of the subscription economy is bound to exaggerate the rise of the subscription economy.
I am glad I persisted.
The book has two parts. The first part addresses the why, while the second part is all about how.
Part 1: Why is the new subscription economy important
The first part of the book packs up examples of consumer and business brands embracing subscription services — the subscription models across automotive, construction equipment, planes, trains, retail, etc.
Three important concepts that the book covers are:
Part 2: How to succeed in a subscription economy
The journey of counting subscribers instead of SKUs is not an easy one. Yet, the companies that have been early adopters of subscription-based models grew eight times faster than S&P 500 companies between 2012 to 2017.
If you are:
(i) An entrepreneur looking to start a new business
(ii) A leader working on strategic direction for your company
(iii) Or like me, just curious about why your credit card bills are swelling with the recurring subscriptions; Subscribed is an excellent introduction to the complex world of the new subscription economy.