As outlined in our previous “Thematics Insights”, we think it makes sense to dive a little deeper into the economics of a subscription and its real value.

We have already identified several reasons why both consumers and businesses are subscribing more and more to products and services. But obviously there are also strong incentives for vendors to propose subscription services to their customers.

Key Content

  • The comeback power of subscriptions. Why are there strong incentives for vendors to propose subscription services to their customers?
  • Subscriptions 101: The importance of renewals. Renewal rates are the most important factor in providing visibility for a subscription-based model.
  • Subscription value. Through the average renewal rate of a subscription, it is possible to compute the present value of a given subscription…
  • Cyclical or not? One of the questions we often get is; are subscription-based businesses more or less cyclical than traditional businesses?
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