{"id":69861,"date":"2016-09-01T21:33:00","date_gmt":"2016-09-01T11:33:00","guid":{"rendered":"https:\/\/elements.blog-cms.envato.net\/?p=1216"},"modified":"2025-12-03T21:20:01","modified_gmt":"2025-12-03T10:20:01","slug":"subscriber-share-model-disrupting-the-subscription-economy","status":"publish","type":"post","link":"https:\/\/elements.envato.com\/learn\/subscriber-share-model-disrupting-the-subscription-economy","title":{"rendered":"How the Subscriber Share Model is Disrupting the Subscription Economy"},"content":{"rendered":"\n

The subscription<\/a> economy<\/em> refers to offering a product<\/a> or service to customers at a regular, recurring (usually monthly or annually) rate, instead of on a per-item-payment. Subscription services<\/a> are nothing new, but with innovations in technology, companies like Spotify and Netflix<\/a> are shaking up entire industries<\/a> with their subscription-based business models.<\/p>\n\n\n\n

Generally speaking, subscription-based models means access to more content for users. Instead of buying a DVD, a per-month payment gives you access to stream everything in Netflix\u2019s library; rather than owning a single version of PhotoShop, the Adobe Creative Cloud gives users access to up-to-date versions of the Adobe Creative Suite. The subscription economy has changed the shape of business today – it means getting more, for less. Right?<\/p>\n\n\n\n

\"Netflix
Netflix (left) and Spotify (right)<\/figcaption><\/figure>\n\n\n\n

Well, not exactly. There are two basic models for these subscription services: Big Pool, and Subscriber Share. Most services use the Big Pool approach – and while it\u2019s simple and straightforward, it also tends to draw a lot of criticism (and even boycotts from pop stars like Taylor Swift<\/a>).<\/p>\n\n\n\n

How the Big Pool Approach Works<\/h3>\n\n\n\n

The basic equation for most Big Pool Approach to subscriptions is:<\/p>\n\n\n\n