Business model analysis and consideration of subscription

Abstract

Subscriptions have existed for a long time, but in recent years, they have been adopted as a form of providing products and services in various fields. In the United States, so-called “subscription boxes" have become mainstream, and by offering attractive products to customers at a fixed price, they create life time value (LTV) and seek monetization. This paper classifies the subscription business model into three stages, clarifying the characteristics of each, and proposes the strategic nature of the business model, taking into account the factors that increase subscriptions and the success factors.