Subscription Economy Articles
Get flash to fully experience Pearltrees
The march to the cloud and subscription style consumption is gathering pace as consumers and corporations shy from big one off outlays. Why buy the CD when you can listen to the tunes on Spotify? Why buy a car when you can sign up to GoGet?
In case you hadn't heard, ownership is out. Instead, it's all about the "subscription economy" -- if the latest in a long line of extrapolations from a very small number of data points is to be believed. The theory is simple.
Zuora , a dominant player in cloud-based payments systems, presented at last week’s All About the Cloud Conference , hosted by the Software and Information Industry Association (SIIA). The company's founder and CEO, Tien Tzuo, spoke about the dramatic shift in the way both consumers and companies are doing business.
As Web businesses embrace subscription business models to sell consumer goods, the benefits are clear: reduced customer acquisition costs, predictable inventory requirements, and steady cash flow. Last year research firm Gartner ( IT ) calculated that by 2015, more than 40 percent of media and digital-products companies around the world would use subscription services for their fulfillment, billing, and renewals. The challenges in relying on subscription models include controlling customer churn, managing credit-card charge-backs and delinquent payments, and ensuring the security of customers’ financial data.
Editor’s note: This story is part of our Microsoft-sponsored series on cutting-edge innovation . Tien Tzuo is founder and CEO of Zuora , an online subscription billing and payment company. Just as the Web rocked the bricks and mortar world of business 15 years ago, the burgeoning subscription economy is forcing today’s enterprises to change how they do business.
Tien Tzuo is CEO of Zuora , a subscription-billing company based in Silicon Valley.
By: James Gagliardi, Vice President, Product and Innovation A recent Gartner Inc. research report issued a strong recommendation for businesses selling online: If you don’t offer subscription plans already, you need to make this popular offering a top priority.
The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The model was pioneered by magazines and newspapers , but is now used by many businesses and websites.
paidContent :: More and more, our lives are wrapped around subscriptions, and that’s not just in online media.
Deploying Applications in the Cloud