We buy more and more to own less and less. Alongside the sharing economy, which increasingly influences our lives, there is the subscription economy: the subscription purchase, someone might say. Nothing new. Yet the differences are substantial. So what are the differences between these subscriptions and the old subscription models typical of publishing: old magazines and newspapers? Technology, digital.
Digital is not just the technology enabler, the tool by which content is delivered to the consumer. Digital is the service itself. It analyzes user behavior, builds behavioral patterns and provides a personalized experience. Unique. Moves mass consumption further on the curve, on the long tail, the long tail.
So Spotify and Apple Music analyse the music we listen to and the songs we interrupt in half to propose dynamic playlists of music that we might like. Netflix dig into their catalogue to find those hidden pearls that we might really like.
The effects from a business point of view are, in a word, loyalty:
- Access:The risk of doing to choose is eliminated, since you access a virtually unlimited number of contents
- Revance: content is selected, targeted based on the behavior of users who find them, then, more interesting
- Inertia: The action of purchase occurs only once, the first, then we forget, due to the low cost
- Ecosystem closed: to change our mind, to leave the system, means to lose everything that has been created (customizations and behavioral data)
- Cost of exit: to interrupt the payment and consequently the subscription involves the loss of access to all the contents that we know but also to those that we do not know increasing the risk of being able to lose something that we might want but that we do not want now.