Business Model Transformation in Subscription-Based Digital Markets
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DOI:
https://doi.org/10.67228/3071642X/IJCFDE-2020PI2B5PPublished 05-04-2020
Subscription Commerce, Business Model Innovation, Recurring Revenue, Digital Platforms, Customer Retention, Subscription Economy, Digital Transformation, Platform Business Models Issue
Section
ArticlesAbstract
Subscription-based business models have emerged as a major force in the digital economy, enabling businesses to generate recurring revenue, enhance customer loyalty, and build long-term relationships. Widely adopted across industries such as software, media, retail, healthcare, and education, these models emphasize continuous value delivery rather than one-time transactions. Technological advancements including cloud computing, mobile applications, artificial intelligence, and data analytics have accelerated the growth of subscription commerce. Various models such as membership-based, freemium, curated, replacement-based, and hybrid subscriptions have evolved to meet changing customer needs. While challenges such as customer churn, subscription fatigue, and pricing optimization remain, innovative strategies supported by AI, predictive analytics, and digital platforms help improve personalization, retention, and operational efficiency. The study finds that organizations implementing innovative subscription models achieve higher customer lifetime value, stronger retention rates, and more predictable revenues, making subscription commerce a key component of future digital business strategies.
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