Subscription-based revenue is a business model where customers pay a recurring fee to access a product or service. This model is popular among companies like Netflix and Spotify, which offer streaming content for a monthly or yearly charge. By providing ongoing value, businesses can create a steady income stream and build long-term relationships with their customers.
This approach benefits both companies and consumers. For businesses, it ensures predictable revenue and reduces the need for constant customer acquisition. For consumers, subscriptions often provide convenience and cost savings, as they can enjoy a variety of services without needing to make individual purchases each time.