Subscription service: Difference between revisions
Overhauled a section for clarity on the difference between traditional and modern subscriptions |
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A '''subscription service''' is an ongoing transaction agreement between the customer and the company, where a user usually pays on a weekly, monthly, or yearly basis to receive the services provided by the company. | A '''subscription service''' is an ongoing transaction agreement between the customer and the company, where a user usually pays on a weekly, monthly, or yearly basis to receive the services provided by the company. | ||
== Traditional subscriptions == | ==Traditional subscriptions== | ||
Traditionally | Traditionally a subscription service provides a physically tangible outcome, meaning some part of the process is ''not'' digitally automated. This includes product delivery services such as newspapers, comics, magazines, or meal-kit delivery services like HelloFresh. Another type of non-automated subscriptions are memberships to physical places or activities, like a sports club or an association. All these kinds of memberships are traditionally paid in cash, further reducing the possibility for digital automation.{{Citation needed|reason=1 Apr 2026}} | ||
== Modern subscriptions == | ==Modern subscriptions== | ||
=== Automation === | ===Automation=== | ||
In the modern subscription landscape, the principal | In the modern subscription landscape, the principal aspect of a subscription service is ''automation.'' This isn't inherently anti-consumer, but it raises some concerns. A company can for example, regardless of consumer expectations, tweak values to exert direct control over the service. This means that unlike making a human gardener or cleaner intentionally degrade the quality of their work, it is ''really easy'' to degrade the quality of an automated service.{{Citation needed|reason=1 Apr 2026}} | ||
=== Digital medium === | ===Digital medium=== | ||
Modern subscriptions | Modern subscriptions provide a digital outcome, which makes it physically intangible. Usually these are digital alternatives to physical mediums like DVDs, CDs, newspapers, and magazines. This isn't inherently anti-consumer, due to digital formats being more flexible. However, if using an [[Features on demand|on-demand]] business model, it requires [[activation]] with [[Forced cloud|forced-cloud]], usually enforced with [[digital rights management]], and this effectively gives up full ownership of the media to the service provider. | ||
=== Anti-consumer signs === | ===Anti-consumer signs=== | ||
Signs to recognize anti-consumer subscriptions include: | Signs to recognize anti-consumer subscriptions include: | ||
# What the subscription provides are [[features on demand]] that are already built into the physical product. | #What the subscription provides are [[features on demand]] that are already built into the physical product. | ||
# The subscription has multiple variants, usually called tiers, and if deployed with various [[Dark pattern|dark patterns]], create a [[fear of missing out]] in the consumer. | #The subscription has multiple variants, usually called tiers, and if deployed with various [[Dark pattern|dark patterns]], create a [[fear of missing out]] in the consumer. | ||
# When customer support is requested regarding the subscription, only an FAQ or chatbot is provided. | #When customer support is requested regarding the subscription, only an FAQ or chatbot is provided. | ||
# The subscription provides the functionality that was previously free, a process known as [[enshittification]]. | #The subscription provides the functionality that was previously free, a process known as [[enshittification]]. | ||
== Broader implications == | ==Broader implications== | ||
===Subscription-based economy=== | ===Subscription-based economy=== | ||
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===Making subscriptions hard to cancel=== | ===Making subscriptions hard to cancel=== | ||
{{See also|Click-to-cancel}} | |||
Memberships and sign-ups, such as those for gyms, which offer a service, make it very easy to sign up online, and then, in turn, make it very hard to cancel. Specific gyms may even require you to certify that you are mailing them, just so that you can cancel the service you signed up for online. Additionally, some services like Adobe will even penalize you for canceling early instead of waiting for the subscription to expire and choosing not to renew. This practice is mainly designed to make consumers feel that it's not worth their time and effort to cancel the subscription.{{Citation needed|reason=1 Apr 2026}} | Memberships and sign-ups, such as those for gyms, which offer a service, make it very easy to sign up online, and then, in turn, make it very hard to cancel. Specific gyms may even require you to certify that you are mailing them, just so that you can cancel the service you signed up for online. Additionally, some services like Adobe will even penalize you for canceling early instead of waiting for the subscription to expire and choosing not to renew. This practice is mainly designed to make consumers feel that it's not worth their time and effort to cancel the subscription.{{Citation needed|reason=1 Apr 2026}} | ||
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===Subscription inflation=== | ===Subscription inflation=== | ||
Subscription inflation occurs when companies increase subscription prices, often arbitrarily. This practice has been seen with Netflix subscriptions, where in 2025 "the standard monthly subscription without advertisements will climb from $15.49 to $17.99, and a standard monthly subscription with ads will increase one dollar to $7.99, Netflix said.<ref name=":0">[https://abcnews.go.com/Business/netflix-raises-prices-us-plans/story?id=117971949 "Netflix raises prices for all US plans. Here's what to know."] - abcnews.go.com - accessed 2025-01-23 ([http://web.archive.org/web/20250722152022/https://abcnews.go.com/Business/netflix-raises-prices-us-plans/story?id=117971949 Archived])</ref> Subscription inflation need not be done to recoup lost revenue, as this Netflix subscription price increase actually occurred after a year of "a stellar earnings report" <ref name=":0" />, meaning that Netflix has the resources to improve its service without raising prices. Subscription inflation has been and will continue to be used solely to raise company profits by forcing consumers to pay more for what may be an inferior service.{{Citation needed|reason=1 Apr 2026}} | Subscription inflation occurs when companies increase subscription prices, often arbitrarily. This practice has been seen with [[Netflix]] subscriptions, where in 2025 "the standard monthly subscription without advertisements will climb from $15.49 to $17.99, and a standard monthly subscription with ads will increase one dollar to $7.99, Netflix said.<ref name=":0">[https://abcnews.go.com/Business/netflix-raises-prices-us-plans/story?id=117971949 "Netflix raises prices for all US plans. Here's what to know."] - abcnews.go.com - accessed 2025-01-23 ([http://web.archive.org/web/20250722152022/https://abcnews.go.com/Business/netflix-raises-prices-us-plans/story?id=117971949 Archived])</ref> Subscription inflation need not be done to recoup lost revenue, as this Netflix subscription price increase actually occurred after a year of "a stellar earnings report" <ref name=":0" />, meaning that Netflix has the resources to improve its service without raising prices. Subscription inflation has been and will continue to be used solely to raise company profits by forcing consumers to pay more for what may be an inferior service.{{Citation needed|reason=1 Apr 2026}} | ||
==Examples of modern subscriptions== | ==Examples of modern subscriptions== | ||
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====Netflix==== | ====Netflix==== | ||
Netflix is a subclass of subscription service, known as a streaming service, where consumers have access to a library of TV shows and movies that persist on the platform for a limited time. | |||
===Gaming=== | ===Gaming=== | ||
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====Game Pass==== | ====Game Pass==== | ||
[[Game Pass]], also known as Xbox Game Pass or [[Microsoft Office 2019 for Mac|Microsoft]] Game Pass, is a subscription service provided by [[Microsoft]] where, for a fee, consumers have open (but temporary) access to games on both Xbox and PC. | |||
====Nintendo Switch Online (NSO)==== | ====Nintendo Switch Online (NSO)==== | ||
[[Nintendo Switch Online]] is a subscription service that offers features on previously available [[Nintendo]] platforms, such as online play and subscription-gated content that used to be one-time purchases, including their emulation library. Additionally, all DLC obtained freely via the service remains accessible only as long as the consumer continues to pay for the service.<ref>https://www.nintendo.com/us/switch/online/nintendo-switch-online/expansion-pack/#dlc ([http://web.archive.org/web/20250429154131/https://www.nintendo.com/us/switch/online/nintendo-switch-online/expansion-pack/ Archived])</ref> | |||
===Software as a service=== | ===Software as a service=== | ||