The subscription business model has been around for a long time. Back in the 19th century, many households started using this type of service to access news and magazine publications. They would mail payments to publishing companies, which would then mail their daily newspaper and monthly magazines back to them. However,despite the long history of the subscription business model, there seems to have been an explosion of new companies tryingit outin recent years.
The concept of subscription models is simple—customers pay fees, whether they be weekly, monthly, or yearly, to receive either a product or service in return. News publications are a classic example of this. Rather than going to the local store to pick upthe daily newspaper, many people opt forsubscriptions instead. They just pay the newspaper company a fee to get newspapers delivered to their door every morning. Other typical subscription services include video and music streamingsites like Netflix or Spotify, grocery delivery companies, and even some software products.
