Are subscriptions the new licence?

Are subscriptions the new licence? The Subscription Revolution is rewriting the definition of ownership in a world where almost everything can be subscribed to. Many businesses are rapidly moving to subscription-based models and taking the lead among their peers. Here are three stories making the headlines this week:

Is subscription the new perpetual licence?
Many enterprises have become used to paying for subscriptions thanks to the cloud. But there are more reasons driving this trend. Budgeting is a huge consideration as businesses can move from a CAPEX to an OPEX model, where budget approvals can be more easily gained. In a subscription-based model, businesses don't have to worry about upfront costs. For enterprises though, walking away from software bought under traditional perpetual licensing models may not be straightforward. For newer businesses, adopting a subscription-based models gives a lot of flexibility, such as access to new features and easily adding new users.
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Medium wants to fix the media with subscriptions
After Twitter's recent plan to adopt a subscription-based model, its co-founder Ev Williams has floated a similar idea for his venture Medium. But he has grander plans with the $5 subscription program. According to Williams, media and publishing organisations are caught in a system that incentivises the wrong behaviour. The huge corporate advertising budgets reward those publishers that can grab the attention of the people and weave a narrative that benefits them. He proposes that the malaise can only be fixed when people pay for the value derived by stories and ideas.
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Can Amazon Prime conquer the online video space in India with subscriptions?
Out of the80 million online video subscribers in India, only 2 million subscribers actually pay for their subscriptions. So, why is Amazon Prime playing the subscriptions game in a primarily ad-supported market? Analysts think it's to do with the company's strategy to keep high levels of engagement going on its platform. In addition to providing video, Amazon Prime also gives more value to customers with faster e-commerce deliveries. Prime Video is one huge reason customers keep returning to the platform and helps Amazon with customer retention.
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Missed last week's news roundup? Catch it here