Why is everything a subscription?
Subscription services are everywhere effecting personal finance the average person is now spending $273 a month on subscriptions and at the same time less than one third of them could afford a $1,000 expense without going into debt…
This only includes software services like netflix, disney plus, hulu, spotify, adobe, apple music, xbox games pass and others. it does not include other recuring expenses like gym or club memberships.
Service companies are doing this to attract venture capital investment. These investors favour subscription businesses because they provide consistent cash flows and can be scaled rapidly before being sold through a traditional IPO, a SPAC or to a private equity fund.
But these businesses are not always perfect and there are some products that just make more sense to sell through a one time direct sale.
So it’s time to Learn How Money Works to find out how everything became a subscription.
Isn’t that always an option? Car companies push that kind of leasing like mad.
Not that I have seen. I have been offered packages that cover the drive train or something similar, but the maintenance is up to me, the insurance is up to me, and that makes for a hell of a car payment each month.
Volvo actually had this very program for a bit. They don’t seem to now which tells you how it went…
Guess it’s not such a global phenomenon as I thought then…
It’s common for fleet leasing but I haven’t encountered widespread push for personal lease. It exists as a service but I don’t know if I’d call it “pushed like mad”.
Maybe I’m out of the loop though, especially globally. It’s probably different from country to country.
Well I live in the crappier side of Europe and in the last 10 or so years, this kind of car leasing have been more popular even for individuals. I was under the impressions the trend came from the west, cause I remember learning about it in high school when it wasn’t much of a thing here yet.