Subscription service: Difference between revisions

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===Subscription-based economy trend===

Subscription service revenue was estimated at "$3 trillion in 2024, up from estimates of around $2 trillion in 2023"<ref>[https://whop.com/blog/subscription-statistics/#:~:text=metrics%2C%20and%20more.-,Subscription%20Economy%20Statistics,%242%20trillion%20in%2020231. "100+ Subscription Statistics for 2025"] - whop.com - accessed 2025-01-23</ref>. Subscription services are becoming more prevalent. The replacement of permanent ownership with subscription services has some negative impacts that can harm consumer rights.

Subscription service revenue was estimated at "$3 trillion in 2024, up from estimates of around $2 trillion in 2023"<ref>[https://whop.com/blog/subscription-statistics/#:~:text=metrics%2C%20and%20more.-,Subscription%20Economy%20Statistics,%242%20trillion%20in%2020231. "100+ Subscription Statistics for 2025"] - whop.com - accessed 2025-01-23 ([http://web.archive.org/web/20260210224358/https://whop.com/blog/subscription-statistics/ Archived])</ref>. Subscription services are becoming more prevalent. The replacement of permanent ownership with subscription services has some negative impacts that can harm consumer rights.

===Redefinition of ownership===

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===Licenses as subscriptions===

A [[license]] grants rights to use a product or service.<ref>[https://www.oxfordlearnersdictionaries.com/us/definition/english/licence "license"] - oxfordlearnersdictionaries.com - accessed 2025-01-23</ref> Licenses differ from subscriptions in that they are permanent, whereas subscriptions are not. In addition, many companies choose to make temporary "licenses" last longer than subscriptions, as [[Adobe]] does.<ref>[https://web.archive.org/web/20250123232818/https://www.adobe.com/howtobuy/buying-programs.html "Adobe Buying Programs"] - archive.org - archived 2025-01-23 </ref> Licenses may also apply to large groups of people, e.g., a student license granted to students for free. The concern here is that [[License euthanasia|permanent licenses are being phased out]] using the [[retroactively amended purchase]] strategy, as [[Adobe Lightroom: Perpetual to Subscription Transition|Adobe has done]], possibly because subscriptions are more profitable. The term "license" is likely vulnerable to redefinition, as ownership is.

A [[license]] grants rights to use a product or service.<ref>[https://www.oxfordlearnersdictionaries.com/us/definition/english/licence "license"] - oxfordlearnersdictionaries.com - accessed 2025-01-23 ([http://web.archive.org/web/20250818080626/https://www.oxfordlearnersdictionaries.com/us/definition/english/licence Archived])</ref> Licenses differ from subscriptions in that they are permanent, whereas subscriptions are not. In addition, many companies choose to make temporary "licenses" last longer than subscriptions, as [[Adobe]] does.<ref>[https://web.archive.org/web/20250123232818/https://www.adobe.com/howtobuy/buying-programs.html "Adobe Buying Programs"] - archive.org - archived 2025-01-23 </ref> Licenses may also apply to large groups of people, e.g., a student license granted to students for free. The concern here is that [[License euthanasia|permanent licenses are being phased out]] using the [[retroactively amended purchase]] strategy, as [[Adobe Lightroom: Perpetual to Subscription Transition|Adobe has done]], possibly because subscriptions are more profitable. The term "license" is likely vulnerable to redefinition, as ownership is.

===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</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.

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.

==Examples of subscription services==

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====Nintendo Switch Online (NSO)====

<blockquote>Further reading: [[Nintendo Switch Online]] </blockquote>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</ref>

<blockquote>Further reading: [[Nintendo Switch Online]] </blockquote>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===

@@ Line 10: / Line 10: @@
 ===Subscription-based economy trend===
-Subscription service revenue was estimated at "$3 trillion in 2024, up from estimates of around $2 trillion in 2023"<ref>[https://whop.com/blog/subscription-statistics/#:~:text=metrics%2C%20and%20more.-,Subscription%20Economy%20Statistics,%242%20trillion%20in%2020231. "100+ Subscription Statistics for 2025"] - whop.com - accessed 2025-01-23</ref>. Subscription services are becoming more prevalent. The replacement of permanent ownership with subscription services has some negative impacts that can harm consumer rights.
+Subscription service revenue was estimated at "$3 trillion in 2024, up from estimates of around $2 trillion in 2023"<ref>[https://whop.com/blog/subscription-statistics/#:~:text=metrics%2C%20and%20more.-,Subscription%20Economy%20Statistics,%242%20trillion%20in%2020231. "100+ Subscription Statistics for 2025"] - whop.com - accessed 2025-01-23 ([http://web.archive.org/web/20260210224358/https://whop.com/blog/subscription-statistics/ Archived])</ref>. Subscription services are becoming more prevalent. The replacement of permanent ownership with subscription services has some negative impacts that can harm consumer rights.
 ===Redefinition of ownership===
@@ Line 22: / Line 22: @@
 ===Licenses as subscriptions===
-A [[license]] grants rights to use a product or service.<ref>[https://www.oxfordlearnersdictionaries.com/us/definition/english/licence "license"] - oxfordlearnersdictionaries.com - accessed 2025-01-23</ref> Licenses differ from subscriptions in that they are permanent, whereas subscriptions are not. In addition, many companies choose to make temporary "licenses" last longer than subscriptions, as [[Adobe]] does.<ref>[https://web.archive.org/web/20250123232818/https://www.adobe.com/howtobuy/buying-programs.html "Adobe Buying Programs"] - archive.org - archived 2025-01-23 </ref> Licenses may also apply to large groups of people, e.g., a student license granted to students for free. The concern here is that [[License euthanasia|permanent licenses are being phased out]] using the [[retroactively amended purchase]] strategy, as [[Adobe Lightroom: Perpetual to Subscription Transition|Adobe has done]], possibly because subscriptions are more profitable. The term "license" is likely vulnerable to redefinition, as ownership is.
+A [[license]] grants rights to use a product or service.<ref>[https://www.oxfordlearnersdictionaries.com/us/definition/english/licence "license"] - oxfordlearnersdictionaries.com - accessed 2025-01-23 ([http://web.archive.org/web/20250818080626/https://www.oxfordlearnersdictionaries.com/us/definition/english/licence Archived])</ref> Licenses differ from subscriptions in that they are permanent, whereas subscriptions are not. In addition, many companies choose to make temporary "licenses" last longer than subscriptions, as [[Adobe]] does.<ref>[https://web.archive.org/web/20250123232818/https://www.adobe.com/howtobuy/buying-programs.html "Adobe Buying Programs"] - archive.org - archived 2025-01-23 </ref> Licenses may also apply to large groups of people, e.g., a student license granted to students for free. The concern here is that [[License euthanasia|permanent licenses are being phased out]] using the [[retroactively amended purchase]] strategy, as [[Adobe Lightroom: Perpetual to Subscription Transition|Adobe has done]], possibly because subscriptions are more profitable. The term "license" is likely vulnerable to redefinition, as ownership is.
 ===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</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.
+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.
 ==Examples of subscription services==
@@ Line 41: / Line 41: @@
 ====Nintendo Switch Online (NSO)====
-<blockquote>Further reading: [[Nintendo Switch Online]] </blockquote>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</ref>
+<blockquote>Further reading: [[Nintendo Switch Online]] </blockquote>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===