Subscription Business Model - Types of Subscriptions

Types of Subscriptions

There are different categories of subscriptions:

• A subscription for a fixed set of goods or services, such as one copy of each issue of a newspaper or magazine for a definite period of time.
• 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 at one time.

For example, a subscription to a rail pass by a company may not be individualized, but might permit all employees of that firm to use the service. For goods with an unlimited supply and for many luxury services, subscriptions of this type are rare.

• 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 but may have extra charges for additional services such as long-distance calls, directory services and pay-per-call services. When the basic service is offered free-of-charge, this Business model is often referred as Freemium.