Abstract
Subscription businesses are regarded as one of the highest valued business models in Wall Street to date.
Well-known companies that use this model include Netflix, Amazon’s Prime Service, Apple Music, Spotify,
Zipcar, IPSY, Dollar Shave Club, and more. Notably, companies such as Amazon/Amazon Prime
incorporate subscriptions into their pay-per-product business model.
The definition of a subscription based model is as follows: “A subscription-based pricing model is a payment
structure that allows a customer or organization to purchase or subscribe to a vendor’s services for a
specific period of time for a set price. Subscribers typically commit to the services on a monthly or annual
basis”.