Subscription revenue refers to the income generated by businesses that offer products or services on a recurring basis. Customers pay a set fee at regular intervals, such as monthly or annually, to access these offerings. This model is common in various industries, including streaming services, software, and magazines. This revenue model provides companies with predictable cash flow and helps build customer loyalty. By offering subscriptions, businesses can create long-term relationships with their customers, often leading to increased lifetime value. Examples of subscription-based companies include Netflix, Adobe, and Spotify.