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Yesterday I had the chance to catch up with a good friend, and we talked briefly about subscription services. You're probably all familiar with the idea of these sorts of things, where you might pay monthly fees for Netflix, your MMOs, or your telephone.
Where things get more interesting is when companies want to start delivering their core products as a subscription bundle. Initially it sounds attractive - you've got some protection from the eye watering capital cost of, say, Microsoft Office. Where things come unstuck is a consumer's ability to service multiple subscription channels.
All of the big corporates looking at these technologies don't, to my mind, have a mature service offering. They're expecting consumers to be willing to die a death of a thousand cuts to have their particular slice of a subscription service. Whether it's your subscription to Norton AntiVirus, or Office Live, they all start to add up - and you will notice this constant drain on your cashflow.
As an alternative mechanism for allowing consumers to get product, I can see it being useful. What really concerns me is the shark grinned zealous persuit of these monetisation models by corporate suppliers. Whenever I see that, I see that they think they've discovered a way of getting
more money out of you, rather than making it easier, or trying competitive monetisation models.
Perhaps as the offerings mature, we'll be better placed to be comfortable about it. I mean, if one company (say, Microsoft) could offer you Office, some sort of anti-virus, a managed backup solution, and a managed web/portal solution, you'd be talking about some value for paying a fee per month for. The problem is, there isn't a supplier who's got a good enough offering there for you to really want to subscribe. Either they don't have all the solution, or they can't charge you in one convenient discounted lump, or whatever.
For now, I'm happy to keep buying the software I want. I'm not concerned about front loaded capital cost for things that have value to me, but I know that increasing demands on my finances monthly lead me into a situation where I can get locked in to what I'm paying monthly for (because I can't afford to get out due to reduced cashflow), as well as reducing my general cashflow across the board. This model works well enough to encourage competition because in order for a company to get more money from me, they need to justify that their new/upgraded product provides me real value - in a subscription model, there's not a huge incentive for them to innovate because
they've already got your money.