Editing Subscription business model (section)

==Subscriptions==
Rather than selling products individually, a subscription offers periodic (daily, weekly, bi-weekly, monthly, semi-annual, yearly/annual, or seasonal) use or access to a product or [[Service (economics)|service]], or, in the case of performance-oriented organizations such as [[List of opera companies|opera companies]], tickets to the entire run of some set number of (e.g., five to fifteen) scheduled performances for a whole season. Thus, a one-time sale of a product can become a recurring sale and build [[brand loyalty]].<ref name=":1" />

Industries that use this model include [[mail order]] [[book sales club]]s and [[music]] sales clubs, private [[web mail]] providers, [[cable television]], [[satellite television]] providers with [[pay television]] channels, providers with digital catalogs with downloadable music or eBooks, audiobooks, [[satellite radio]], [[Telephone company|telephone companies]], [[mobile network operator]]s, internet providers, [[software publisher]]s, [[website]]s (e.g., [[blogging]] websites), business solutions providers, financial firms, [[health club]]s, lawn mowing and snowplowing services, [[pharmaceutical]]s, renting an apartment, property taxes, as well as the traditional newspapers, magazines, and [[academic journal]]s.

Renewal of a subscription may be periodic and activated automatically so that the cost of a new period is automatically paid for by a pre-authorized charge to a [[credit card]] or a checking account. A common variation of the model in online games and on websites is the ''[[freemium]]'' model, in which the first tier of content is free. Still, access to premium features (for example, game power-ups or article archives) is limited to paying subscribers.<ref>{{Citation | year=2023 | title=What is the SaaS Subscription Revenue Model? | url=https://whop.com/blog/saas-subscription-revenue/ | access-date=10 November 2023}}</ref>

In addition to the freemium model, other subscription pricing variations are gaining traction. For instance, the tiered pricing model is frequently used in software as a service (SaaS) platforms, offering customers different access levels and features based on their subscription tier. This model is particularly effective for tailoring services to customer requirements. Another approach is the usage-based pricing model, which calculates charges based on the extent of service or product utilization by the customer. This model is becoming increasingly prevalent, especially in services where customer usage varies significantly.<ref>{{Citation | year=2023 | title=Pricing Models for Software – How to Choose the Right One | url=https://www.growthlead.co/pricing-models-for-software/ | access-date=26 November 2023}}</ref>

===Types and examples===
There are different categories of subscriptions:
*A subscription for a fixed set of goods or services.
** Periodicals, such as a newspaper or magazine, have several types of subscriptions:
*** [[Magazine#Paid circulation|Paid circulation]]
*** Non-paid circulation
*** [[Magazine#Controlled circulation|Controlled circulation]]
** [[Subscription box]]es contain a variety of consumables
*** Community-supported agriculture
*** [[Meal delivery service]]
*** [[Meal kit]] delivery service
*A subscription for unlimited use of a service or collection of services. Usage may be personal and non-transferable for a family or, under certain circumstances, for a group utilizing a service simultaneously. In the publishing industry, a subscription to a bundle of several journals, at a discounted price, is known as a "big deal".<ref>{{cite book|author=Sally Morris |display-authors=etal |title= Handbook of Journal Publishing|year= 2013|publisher=Cambridge University Press|isbn=978-1-107-02085-6 |pages=163–164 }}</ref>
** [[Software as a service]]
*A [[wikt:pay-as-you-go|pay-as-you-go]] subscription where a consumer subscribes to purchase a product periodically. This is also known as the convenience model because it is convenient for the customer not to have to remember to find their product and buy it periodically. This model has been popularized by companies like Dollar Shave Club, [[Birchbox]], and OrderGroove. Based on their success, many other retailers have begun to offer subscription model services.<ref>[https://thoughts.manthan.com/2015/07/16/retail-subscription-models-whos-doing-what-expert-round-up/ Retail Subscription Models — Expert Round-up]. {{Webarchive|url=https://web.archive.org/web/20180917034419/https://thoughts.manthan.com/2015/07/16/retail-subscription-models-whos-doing-what-expert-round-up/|date=2018-09-17}}.<span> Retail Subscription Models! Who's doing what? [EXPERT ROUND-UP</span></ref> 
** For example, a company's subscription to a rail pass may not be individualized but might permit all firm employees to use the service. Subscriptions of this type are rare for goods with an unlimited supply and many luxury services.
*A subscription for basic access or minimal service plus some additional charge depending on usage. A basic telephone service pays a pre-determined fee for monthly use. Still, it may have extra charges for other services such as long-distance calls, directory, and pay-per-call services. When the basic service is offered free of charge, this business model is often referred to as [[Freemium]].
*An online subscription supports content creators using [[crowdfunding]]. Fans can interact and send tips to the content creator but also have access to exclusive paid content. Popular examples are [[Patreon]] and [[OnlyFans]].

===Publishing===
In publishing, the subscription model typically involves a [[paywall]], [[paysite]], or other "toll-access" system (named in opposition to [[open access]]). As revenues from digital advertising diminish, a paid subscription model is being favoured by more publishers who see it as a comparatively stable income stream.<ref>{{Cite web|url = https://digiday.com/media/churn-and-burn-publishers-with-surging-subscriptions-paradoxically-left-vulnerable-to-revenue-shortfalls/|title = 'Churn and burn': Publishers are prioritizing subscription volume over immediate revenue|date = 15 June 2020|access-date = 23 September 2021|archive-date = 11 September 2021|archive-url = https://web.archive.org/web/20210911222051/https://digiday.com/media/churn-and-burn-publishers-with-surging-subscriptions-paradoxically-left-vulnerable-to-revenue-shortfalls/|url-status = live}}</ref>