Subscription business model

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A subscription service is a type of service where a customer pays a fee every so often to a business in order to keep access to a product. The term "subscription service" became more known with the rise of digital streaming services in the wake of the COVID-19 pandemic, which brought more people online, creating a market for movie and series streaming platforms such as Netflix.^[1]

Most of the time, subscriptions automatically take money from a provided bank account, instead of needing the user to make the purchase themselves. However, this business model can be abused by businesses by making prices more expensive, or making the act of cancelling a subscription very difficult. Gym memberships are criticised for this very reason, as for some of their memberships, cancelling a subscription is locked behind a difficult and complicated process.^[2]

Instead of purchasing an item or service for one price, subscription services charge a fee every so often in order to maintain access to the provided service. This fee may be charged every month or every year, depending on the subscription being bought.

Sometimes, subscription services offer a free trial, giving customers access to the advertised service for a certain time. When this trial ends, the customer is charged. This is used by subscription providers to increase the chance that customers will stay, and pay for a subscription.

Uses for subscription services are everywhere across entertainment, such as cable television, using a special "box" provided by a company such as Sky and Comcast. More recently, this model is used by streaming services, online providers of movies and TV shows. Examples include Netflix, Disney+, and HBO Max.

Subscription services are also used across many different video games. "Free-To-Play" games are free for players to download and play, but content such as outfits, weapons, or other items may be locked behind a subscription service, such as Fortnite's "The Crew" subscription.^[3]

1. ↑ "The Rise of Streaming Services: How They Are Changing the Film Industry". STARBURST Magazine. Retrieved 2026-05-17.
2. ↑ "Why is it so hard to cancel your gym membership?". www.stylist.co.uk. 2022-01-19. Retrieved 2026-05-17.
3. ↑ Sandmann, Leandro (2024-06-03). "Fortnite Subscription Complete Guide: Cost, Benefits, Cancellation & How It Works". Blog about game tips, lag reduction and more tricks. Retrieved 2026-05-17.