Old Payment Models for New Media

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Subscription model for digital media publishing

Consumers pay more for media when it’s delivered in a subscription model.¬†But mobile apps, which represent one of the biggest entertainment trends in years, haven’t benefited from the extra cash or predictable revenue streams that come with subscription fees.¬†Until very recently, there was no mechanism in place to support subscription billing in either the Apple App Store or the Android Market. And that, along with faltering creative, has hampered digital publishing.

Now that both Apple and Google have subscription payment models in place, it’s time to see what the digital media world can do with them. The potential for recurring revenue should lead publishers to invest more in the content they create. Will we see more apps with video? More apps with AR and 3D modeling features? More apps with regular updates because users are buying in to a longer-term experience?

With subscription fees, we’re looking at an old payment model that’s now being transported to a new platform. We should expect great things.

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