In response to Stella Cho’s blog post “Cable Television: The New Old-Timer”, subscription sites such as Netflix have taken a toll on the cable television industry. The easy accessibility and variety offered by Netflix makes the company a disruptive innovator, allowing consumers to choose what they would like to stream rather than forced into the set-schedule concept of cable TV.
In addition, Netflix has established a strong marketing strategy – their one month free trial. I, myself, have recently taken up this cost-friendly subscription service and intend to continue with it well past the trial date.
Limited edition Fall Fête box from the online beauty subscription site Birchbox. (Source: BirchBox)
Not only has the online subscription service been a hit within the media market, but this idea has been paralleled within several other industries, including companies such as Birchbox, JewelMint, ShoeDazzle, and NatureBox. These subscription sites often come with profile surveys to determine the best “handpicked” products for customers. With a more customized approach, consumers will likely be inclined to shop from the comfort of their homes. Among these subscription companies are cost-efficient options upwards to high-end products. With the breadth of the retail market, this newly sourced revenue stream is bound to expand, taking over the consumer base originally found shopping in store around malls.
With time, we will see even traditional store-based companies taking on this subscription approach as a way to adapt to change.