I had a great conversation with my ex-boss and acquirer Suwandi, CEO of Mekari, on this podcast.
Some of the highlights:
- Subscription isn’t a new business model, we’ve been subscribing to newspapers, magazines, cable tv, or even utilities like electricity and water
- Payment is key to unlocking this business model, the easier/less friction it is to create recurring payment, the likelier this business model will succeed in a particular country
- Subscription is a way to lock-in your customers, for example if I only have $15 for content subscription budget, I will only be able to pick one between Netflix, HBO Go, Disney Plus, and more
- Subscription also works as a way to create behavior loop as proven with Amazon Prime. Customers with Prime are buying more things compared to customers without prime.
- As generations change, ownership became something of a luxury or perhaps, an option. Subscription helped with this transition.
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