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The subscription business model is a business model in which a customer must pay a recurring price at regular intervals for access to a product or service . The model was pioneered by publishers of books and periodicals in the 17th century, and is now used by many businesses, websites and even pharmaceutical companies in partnership with governments.

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45-597: DishTV India (stylised as dishtv ) is an Indian subscription based satellite television provider based in Noida , Uttar Pradesh with Yes Bank as its biggest stakeholder. DishTV was launched by the Zee Group on 2 October 2003. It ranked #437 and #5 on the list of media companies in Fortune India 500 roster of India's largest corporations in 2011. Dish TV was also voted India's most trusted DTH brand according to

90-649: A paid subscription model is being favoured by more publishers who see it as a comparatively stable income stream. In the field of academic publishing , the subscription business model means that articles of a specific journal or conference proceedings are only available to subscribers. Subscriptions are typically sold to universities and other higher education institutions and research institutes , though some academic publishers also sell individual subscriptions or access to individual articles. In contrast with other media such as newspapers , subscription fees to academic publishers generally do not go towards supporting

135-440: A perpetual licensing model to a subscription model, known as " software as a service ". This move has significant implications for sales and customer support organizations. Over time, the need to close large deals decreases, resulting in lower sales costs. However, the size of the customer support organization increases so that the paying customers stay happy. Consumers may find subscriptions convenient if they believe they will buy

180-422: A predictable and constant revenue stream from subscribed individuals for the duration of the subscriber's agreement. Not only does this greatly reduce uncertainty and the riskiness of the enterprise, but it often provides payment in advance (as with magazines, and concert tickets), while allowing customers to become greatly attached to using the service and, therefore, more likely to extend by signing an agreement for

225-404: A product regularly and might save money. The customer saves time for repeated delivery of the product or service. Subscriptions which exist to support clubs and organizations call their subscribers "members" and they are given access to a group with similar interests. Subscription pricing can make it easier to pay for expensive items since they can often be paid for over time and thus can make

270-576: A psychological phenomenon may occur when a customer renews a subscription, that may not occur during a one-time transaction: if the buyer is not satisfied with the service, he/she can leave the subscription to expire and find another seller. Because customers may only need or want some of the items received, this can lead to waste and an adverse effect on the environment, depending on the products. Greater volumes of production, greater energy and natural resource consumption , and subsequently greater disposal costs are incurred. Subscription models also create

315-441: A satellite radio network, before being bought out by CD Radio in 1993 for $ 2 million. In November 1999, Margolese changed the name of CD Radio to Sirius Satellite Radio. In November 2001, Margolese stepped down as CEO, remaining as chairman until November 2003, with Sirius issuing a statement thanking him "for his great vision, leadership and dedication in creating both Sirius and the satellite radio industry." XM’s first satellite

360-428: A single purchase. In addition, subscription models increase the possibility of vendor lock-in , which can have fatally business-critical implications for a customer if its business depends on the availability of software: For example, without an online connection to a licensing server to verify the licensing status every once in a while, a software under a subscription-model would typically stop functioning or fall back to

405-1049: A subscription offers periodic (daily, weekly, bi-weekly, monthly, semi-annual, yearly/annual, or seasonal) use or access to a product or service , or, in the case of performance-oriented organizations such as opera companies , tickets to the entire run of some set number of (e.g., five to fifteen) scheduled performances for a whole season. Thus, a one-time sale of a product can become a recurring sale and build brand loyalty . Industries that use this model include mail order book sales clubs and music sales clubs, private web mail providers, cable television , satellite television providers with pay television channels, providers with digital catalogs with downloadable music or eBooks, audiobooks, satellite radio , telephone companies , mobile network operators , internet providers, software publishers , websites (e.g., blogging websites), business solutions providers, financial firms, health clubs , lawn mowing and snowplowing services, pharmaceuticals , renting an apartment, property taxes, as well as

450-652: A wider variety of programming options than terrestrial radio. Satellite radio technology was inducted into the Space Foundation Space Technology Hall of Fame in 2002. Satellite radio uses the 2.3 GHz S band in North America for nationwide digital radio broadcasting. In other parts of the world, satellite radio uses the 1.4 GHz L band allocated for DAB . The first satellite radio broadcasts occurred in Africa and

495-530: Is defined by the International Telecommunication Union (ITU)'s ITU Radio Regulations (RR) as a broadcasting-satellite service . The satellite's signals are broadcast nationwide, across a much wider geographical area than terrestrial radio stations, and the service is primarily intended for the occupants of motor vehicles . It is available by subscription, mostly commercial free, and offers subscribers more stations and

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540-433: Is important to have full access even to old files for decades). Also, consumers may find repeated payments to be onerous. Subscription models often require or allow the business to gather substantial amounts of information from the customer (such as magazine mailing lists), and this raises issues of privacy . A subscription model may benefit the software buyer if it forces the supplier to improve its product. Accordingly,

585-425: Is limited to paying subscribers. In addition to the freemium model, other subscription pricing variations are gaining traction. For instance, the tiered pricing model is frequently used in software as a service (SaaS) platforms, offering customers different access levels and features based on their subscription tier. This model is particularly effective for tailoring services to customer requirements. Another approach

630-494: Is the usage-based pricing model, which calculates charges based on the extent of service or product utilization by the customer. This model is becoming increasingly prevalent, especially in services where customer usage varies significantly. There are different categories of subscriptions: In publishing, the subscription model typically involves a paywall , paysite , or other "toll-access" system (named in opposition to open access ). As revenues from digital advertising diminish,

675-411: The 2.3 GHz S band in North America for nationwide digital radio broadcasting. MobaHO! operated at 2.6 GHz. In other parts of the world, satellite radio uses part of the 1.4 GHz L band allocated for DAB . Satellite radio subscribers purchase a receiver and pay a monthly subscription fee to listen to programming. They can listen through built-in or portable receivers in automobiles; in

720-615: The Brand Trust Report 2014, a study conducted by Trust Research Advisory. On 22 March 2018, Dish TV completed a merger with Videocon d2h, creating the largest DTH provider in India at the time of merger. DishTV launched the first DTH service in India on 2 October 2003. The company decided not to compete against entrenched cable operators in metros and urban areas, and instead focused on providing services to rural areas and regions not serviced by cable television. Jawahar Goel, who led

765-629: The Middle East in 1999. The first US broadcasts were in 2001 followed by Japan in 2004 and Canada in 2005. There have been three (not counting MobaHo! of Japan) major satellite radio companies: WorldSpace , Sirius Satellite Radio and XM Satellite Radio , all founded in the 1990s in the United States. WorldSpace operated in the Africa and Asia region, whereas Sirius and XM competed in the North American (USA and Canada) market. Of

810-638: The Republic of Korea and whose services began on October 20, 2004, and ended on March 31, 2009. XM satellite radio was launched in Canada on November 29, 2005. Sirius followed two days later on December 1, 2005. Sirius Canada and XM Radio Canada announced their merger into Sirius XM Canada on November 24, 2010. It was approved by the Canadian Radio-television and Telecommunications Commission on April 12, 2011. Satellite radio uses

855-545: The United States began providing background music to hotels, retail chains, restaurants, airlines and other businesses. On April 30, 2013, SiriusXM CEO Jim Meyer stated that the company would be pursuing opportunities over the next few years to provide in-car services through their existing satellites, including telematics (automated security and safety, such as stolen vehicle tracking and roadside assistance) and entertainment (such as weather and gas prices). As of December 2020 , SiriusXM had 34.7 million subscribers. This

900-460: The analyst knows who is an active customer and who recently churned. Additional benefits include a higher average customer lifetime value (ACLV) than that of nonrecurring business models, greater customer inertia and a more committed customer base as it transitions from purchase to opt-out decisions, and more potential for upselling and cross-selling other products or services. Some software companies such as Adobe and Autodesk have moved from

945-466: The company filed for Chapter 11 bankruptcy in November 2008. In March 2010, the company announced it would be de-commissioning its two satellites (one served Asia , the other served Africa). Liberty Media , which owns 50% of Sirius XM Radio, had considered purchasing WorldSpace’s assets, but talks between the companies collapsed. The satellites are now transmitting educational data and operate under

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990-492: The creation of the content: the scientific articles are written by scientists and reviewed by other scientists as part of their work duties. The publisher does not pay the paper authors and reviewers. In this light, the subscription model has been called undesirable by proponents of the open access movement. Academic publications that use the subscription model are called "closed-access" in opposition to their open-access counterparts. Businesses benefit because they are assured

1035-426: The functionality of a freemium version, thereby making it impossible (to continue) to use the software in remote places or particularly secure environments without internet access, after the vendor has stopped supporting the version or software, or even has gone out of business leaving the customer without a chance to renew the subscription and access his data or designs maintained with the software (in some businesses it

1080-587: The goal of making satellite radio programming available to the developing world. On June 22, 1991, the FCC gave WorldSpace permission to launch a satellite to provide digital programming to Africa and the Middle East . WorldSpace first began broadcasting satellite radio on October 1, 1999, in Africa. India would ultimately account for over 90% of WorldSpace’s subscriber base. In 2008, WorldSpace announced plans to enter Europe , but those plans were set aside when

1125-691: The home and office with a portable or tabletop receiver equipped to connect the receiver to a stereo system; or on the Internet. Reception is activated by obtaining the radio's unique ID and giving this to the service provider. Ground stations transmit signals to the satellites which are 35,786 kilometers (22,236 miles) above the Equator in geostationary orbits . The satellites send the signals back down to radio receivers in cars and homes. This signal contains scrambled broadcasts, along with meta data about each specific broadcast. The signals are unscrambled by

1170-689: The industry," the FCC also sold a license to the American Mobile Radio Corporation, which changed its name to XM Satellite Radio in October 1998. XM was founded by Lon Levin and Gary Parsons, who served as chairman until November 2009. CD Radio purchased their license for $ 83.3 million, and American Mobile Radio Corporation bought theirs for $ 89.9 million. Digital Satellite Broadcasting Corporation and Primosphere were unsuccessful in their bids for licenses. Sky Highway Radio Corporation had also expressed interest in creating

1215-422: The launch, recalled 10 years later, "We hardly had four transponders and could offer only 48 channels, compared to analog cable that was giving 60 and was much cheaper. And, Star refused to give its channels. So, we decided to go slow and concentrate in cable-dry and cable-frustrated markets, rather than cable-rich markets and build the market step by step." Dish TV acquired 350,000 subscribers within 2 years of

1260-536: The launch. Following bitter legal proceedings between Star and Zee , in 2007, the two companies called a truce and began offering their channels on each other's services. This decision and Dish TV's acquisition of more transponders enabled them to offer 150 channels on their service, more than any other DTH service in India at the time. On 11 November 2016, the Board of Directors of Dish TV and Videocon d2h agreed to an all-stock merger of their DTH operations. The merger

1305-511: The merger. As of 31 December 2017, d2h had a market share of 19% among the pay DTH operators. The amalgamation was officially completed on 22 March 2018. The merger made the new combined entity the largest DTH provider in India with 17.7 million active subscribers. Dish TV and Videocon d2h reported separate revenue numbers in FY2017. The combined total revenue of the two firms was ₹ 8,077 crore (US$ 970 million). The company retained

1350-671: The name of DishTV India Limited after the merger. In May 2021, it was disclosed that promoters' shareholding in Dish TV has fallen to just 5.67%. It was also told that Yes Bank has become largest shareholder of the company. Zing Digital is a subsidiary of Dish TV India launched in January 2015 to provide access to South India's regional channel. The service currently operates in Kerala , West Bengal and Odisha . Subscription business model Rather than selling products individually,

1395-561: The name of Yazmi USA, LLC. Ondas Media was a Spanish company which had proposed to launch a subscription-based satellite radio system to serve Spain and much of Western Europe, but failed to acquire licenses throughout Europe. Onde Numérique was a French company which had proposed to launch a subscription-based satellite radio system to serve France and several other countries in Western Europe but has suspended its plans indefinitely, effective December, 2016. Sirius Satellite Radio

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1440-544: The next period close to when the current agreement expires. In an integrated software solution, for example, the subscription pricing structure is designed so that the revenue stream from the recurring subscriptions is considerably more significant than the revenue from simple one-time purchases. Some subscription schemes (like magazines) also increase sales by not allowing subscribers to accept or reject any specific issue. This reduces customer acquisition costs and allows personalized marketing or database marketing . However,

1485-410: The opposite effect. This can be illustrated by subscribing to a service for mowing lawns. The effective use of a single mower increases when mowing for a collection of homes; instead of every family owning a lawnmower that is not used as much as the service-providing mower, the use of resources for producing lawnmowers, therefore, decreases while lawns stay cut. Satellite radio Satellite radio

1530-425: The product seem more affordable. On the other hand, most newspaper and magazine-type subscriptions are paid upfront, which may prevent some customers from subscribing. Fixed prices may be an advantage for consumers who frequently use those services. However, it could disadvantage a customer who plans to use the service frequently but later does not. The commitment to paying for a package may have been more expensive than

1575-537: The radio receiver modules, which display the broadcast information. In urban areas, ground repeaters enable signals to be available even if the satellite signal is blocked. The technology allows for nationwide broadcasting, so that, for instance US listeners can hear the same stations anywhere in the country. Satellite radio in the US offers commercial-free music stations, as well as news, sports, and talk, some of which include commercials. In 2004, satellite radio companies in

1620-532: The satellites, and for various other business expenses. Stating that it was the only way satellite radio could survive, Sirius and XM announced their merger on February 19, 2007, becoming Sirius XM. The FCC approved the merger on July 25, 2008, concluding that it was not a monopoly, primarily due to Internet audio-streaming competition. MobaHo! was a mobile satellite digital audio/video broadcasting service based in Japan which offered different services to Japan and

1665-413: The system requires that the business have an accurate, reliable, and timely way to manage and track subscriptions. From a marketing-analyst perspective, the vendor has the added benefit of knowing the number of currently active members since a subscription typically involves a contractual agreement. This so-called 'contractual' setting facilitates customer relationship management to a large extent because

1710-517: The three companies, WorldSpace went bankrupt in 2009 and Sirius and XM merged in 2008 to form Sirius XM . The merger was done to avoid bankruptcy. The new company had financial problems and was within days of bankruptcy in 2009, but was able to find investors. The company did not go bankrupt and Sirius XM Satellite radio continues (as of 2024 ) to operate. WorldSpace was founded by Ethiopia-born lawyer Noah Samara in Washington, D.C. , in 1990, with

1755-482: The traditional newspapers, magazines, and academic journals . Renewal of a subscription may be periodic and activated automatically so that the cost of a new period is automatically paid for by a pre-authorized charge to a credit card or a checking account. A common variation of the model in online games and on websites is the freemium model, in which the first tier of content is free. Still, access to premium features (for example, game power-ups or article archives)

1800-534: The use of the S-band frequencies that the FCC subsequently decided to allocate to digital audio broadcasting. The National Association of Broadcasters contended that satellite radio would harm local radio stations. In April 1992, Rothblatt resigned as CEO of Satellite CD Radio; Briskman, who designed the company's satellite technology, was then appointed chairman and CEO. Six months later, Rogers Wireless co-founder Margolese, who had provided financial backing for

1845-492: The venture, acquired control of the company and succeeded Briskman. Margolese renamed the company CD Radio, and spent the next five years lobbying the FCC to allow satellite radio to be deployed, and the following five years raising $ 1.6 billion, which was used to build and launch three satellites into elliptical orbit from Kazakhstan in July 2000. In 1997, after Margolese had obtained regulatory clearance and "effectively created

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1890-673: Was approved by the Competition Commission of India (CCI) on 10 May 2017, and by the National Company Law Tribunal on 27 July 2017. The merger faced uncertainty in January 2018, when Dish TV announced that it was re-evaluating the merger after some of the Videocon Group's lenders petitioned the National Company Law Tribunal to open insolvency proceedings against the company. In February 2018, Dish TV announced that it intended to go through with

1935-596: Was founded by Martine Rothblatt , who served as the new company's Chairman of the Board. Co-founder David Margolese served as Chief Executive Officer with former NASA engineer Robert Briskman serving as President and Chief Operating Officer. In June 1990, Rothblatt's shell company, Satellite CD Radio, Inc., petitioned the Federal Communications Commission (FCC) to assign new frequencies for satellites to broadcast digital sound to homes and cars. The company identified and argued in favor of

1980-413: Was launched on March 18, 2001 and its second on May 8, 2001. Its first broadcast occurred on September 25, 2001, nearly four months before Sirius. Sirius launched the initial phase of its service in four cities on February 14, 2002, expanding to the rest of the contiguous United States on July 1, 2002. The two companies spent over $ 3 billion combined to develop satellite radio technology, build and launch

2025-451: Was primarily due to the company’s partnerships with automakers and car dealers. Roughly 60% of new cars sold come equipped with SiriusXM, and just under half of those units gain paid subscriptions. The company has long-term deals with General Motors , Ford , Toyota , Kia , Bentley , BMW , Volkswagen , Nissan , Hyundai and Mitsubishi . The presence of Howard Stern , whose show attracts over 12 million listeners per week, has also been

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