The Era of Subscription


We are willing to make a continuos commitment with your brand or services if you give us added value in exchange. When we subscribe to a service, we feel more compelled to use it routinely when it facilitates and satisfies our needs and desires, one click away.


The entertainment industry has completely evolved its traditional formats and business models taking advantage of new paradigms and technologies. Netflix started in 1997 as a DVD rental service. While Blockbuster, the category leader back then, charged you for every single rent (and penalty you for every day of delay in the return), Netflix started as a subscription “all you can see” model. For a fixed montlhy amount you had always a fixed number of DVDs in your hand, for all the time you wanted. And then you may write them to change those that you have already seen. That model made it easy for them to abandon the DVD arena and enter a full digital platform, we all gladly accepted.

The Era of Subscription - Netflix


Spotify’s “all you can hear” business model has revolutionized the music industry. Their FREEMIUM business model allows you to listen all the music you want, interrupted by advertising (as any traditional media) or you can actually subscribe and, for a monthly fee, listen to all that music without interruptions.

The Era of Subscription - Spotify


In times of the commoditization of everything, you may expect that any razor will work reasonably fine. This is a recurring purchase, so subscribing to a home-delivery service makes all the sense in the world. With this club, for only one dollar per month you receive good razors direct to your door, hassle-free and smart.

The Era of Subscription - Dollar Shave Club


There was a time when loyalty programs took off and made sense. Giving you miles for free with every purchase was a differentiator for a few airlines that started that model. But when EVERY airline gives you miles, and you may actually use your miles with many other airlines, giving them for free doesn’s make tha much sense. Instead, some airlines are starting to charge you for your loyalty. Volaris V.CLUB charges you an annual fee (around USD$ 25) for your subscription. It gives you in exchange very low prices and other benefits. The psychological result is easy to see: once you paid them they are your first option whenever you are looking for your next flight (because you’re paying for it!). Loyalty is not bought nowadays, it is sold.

The Era of Subscription - Volaris V Club


Click here to navigate our list of Behavioral Trends for value creation, full of insights and needstates, written from a human-centered perspective by our partner Andrea Lobo.


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