The Subscription Economy
Data, Personalisation and Lock-in
Subscription firms learn about users and use it to personalise, but it can also lock customers into a service's ecosystem.
Knowledge becomes a moat.
Personal
Recommendations improve as the service learns preferences.
Switching costs
Cancelling means losing playlists, history and settings.
Ecosystems
Bundles such as phone, cloud and media deepen ties.
Privacy
Data use raises consumer privacy concerns.
A watchlist
A viewer sticks with a service to keep her saved lists and recommendations.
Ignoring the cost of lock-in
Leaving may be harder than it seems.
Key takeaways
- Personalisation improves service.
- Switching costs bind users.
- Ecosystems tie customers.
- Privacy is a concern.
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