Wednesday, February 23, 2011

The "Subscription" Economy

Tien Tzuo, CEO of a subscription billing company in Silicon Valley, took a broader look at the competition between Google and Apple over paid content in his piece called The 'Subscription Economy' Is Growing, And It's Bigger Than Just Media. Tzuo focused on the transition from a manufacturing-based economy to a subscription-based economy and how it might actually improve relationships between customers and companies in the long-run. Unlike the age of manufacturing where consumers were making one-time buys, consumers are contributing to a consistent revenue stream for companies. Likewise, consumers are benefiting because companies are trying to create a long-term relationship with them. Part of that relationship requires the companies to upgrade and improve their services to keep those consumers coming back.

Kaleigh Robichaud
Michael Marx

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