Subscription business models the new standard?

Subscription business models the new standard? As the competition between companies intensifies, many businesses are using subscription-based business models as a strategic lever to gain advantage. Here are three interesting headlines from the world of subscriptions this week:

Subscription business models drive innovation
With the rapid adoption of cloud platforms and SaaS models along with the increase in subscription services, software offered through a subscription billing model is becoming the new default for many businesses. According to a Gartner study, the public cloud services expenditure in the APAC region alone will rise to $13 billion by 2019, which indicates the popularity of subscription-based services. It also points to the fact that more and more companies want to prioritise spending based on usage before they make a major investment in software.
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Boomerang launches a cartoon subscription service
Time Warner and Warner Bros. have joined the league of businesses that have adopted subscription-based business models with the launch of Boomerang. This $5 per month service is aimed towards kids with content that includes both classic titles and current hits. Top subscription-based streaming services such as Netflix and Amazon already offer kids content on their platform. Boomerang will also offer other standard features that are common to subscription offerings, such as personalised recommendations, offline viewing, multiple language support and family profiles.
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Tableau introduces new subscription pricing model
Leading US-based visual analytics company Tableau, has recently started offering subscription pricing plans on its range of BI products. This will allow businesses to use the analytics platform without paying for a perpetual software licence. Switching to a recurring billing model will help Tableau compete in the highly competitive BI market, and will provide a scalable, flexible and cost-effective option for customers.
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Missed last week's news roundup? Read it here