The subscription economy has been one of the main beneficiaries of the covid 19 pandemic, with most businesses in this niche growing faster than the S&P 500 index. According to a recent analysis by UBS Wealth Management and Bernstein, the digital subscription industry is well on track to hit a valuation of $1.5 trillion by 2025. While these statistics are quite impressive, it is hard to ignore some of the underlying challenges in the subscription economy.
Currently, it is an uphill task to manage subscriptions, given that the normal consumer is subscribed to several digital services. Furthermore, some of these subscriptions entice their target market with free trials that are simple to activate but fairly difficult to opt out. Well, that is just one of the major problems; as it stands, over 50% of consumers are paying for a subscription service that they hardly use.
Does the big question then become how stakeholders can tackle these shortcomings? Thanks to the rise of subscription management apps such as Revuto, digital consumers can now efficiently manage their active subscriptions. The Croatian-based startup touts over 350,000 users, having grown significantly over the past year. Most notably, Revuto launched a Cardano native token REVU whose Initial Coin Offering generated over $10 million.
With barely a year since REVU’s initial debut, Revuto is taking the game a notch higher with a new Non-fungible token (NFT) collection ‘Revulution’ designed to improve its value proposition in the subscription economy. The collection was launched on July 11, opening doors for the Revuto community and netizens to acquire an NFT that can be used to purchase lifelong digital subscriptions on Netflix and Spotify.
NFTs Meet the Subscription Economy
As it stands, most of the NFTs that exist in the market are tied to the gaming and art industries. While it is undeniable that these blockchain-oriented assets are significantly adding value to both sectors, Revulution NFTs are exploring an entirely new space, the $275 billion strong subscription economy. A niche that is projected to expand at a fast rate given the ongoing paradigm shift to digital ecosystems.
So, how will the Revulution NFT collection change the dynamics of the subscription economy? At the core, this particular digital asset collection seeks to solve the challenges mentioned in the introduction. Let’s delve deeper into the two main areas where Revulution NFTs are set to make an impact.
- Lifelong Digital Subscriptions
In most cases, consumers in the subscription economy have a limited number of options when it comes to purchasing a particular service. The firms in this industry often structure products that cover a specific period of time (weekly, monthly or annually). What if a subscriber wanted to purchase Netflix or Spotify access for a longer period? The Revulution NFT collection is designed for this purpose; lifelong subscription payments.
Unlike the current offerings by online subscription businesses, Revulution NFTs enable consumers to buy any subscription for their preferred time frame. This means that the NFT owners do not have to operate within the time confines featured on most of the digital subscription products. Instead, Revuto has created an opportunity for consumers to buy lifelong subscriptions in the form of an NFT.
- Secondary Subscription Markets
As highlighted earlier in the article, a majority of digital service subscribers are stuck with subscriptions that they are not using. This is because it is relatively hard for a consumer to generate value by selling the subscription to another interested party. With Revulution NFTs in the picture, this will be a challenge of the past.
By design, Revuto’s NFT collection can be exchanged from one owner to another, provided the NFT still has a remaining active period. In simpler terms, Revulution NFTs act as a vehicle of value transfer in the subscription economy. According to a detailed description by Revuto, the firm will attach a Virtual Debit Card (VDC) to each NFT, through which it will be topping up the subscription until the period expires.
“Once the subscription period ends, the NFT will expire, and Revuto won’t be topping up old or issuing new Virtual Debit Cards for that service regardless of who has the NFT in their wallet.” further adds the medium blog post.
Going by the rate at which the world is adopting digital ecosystems, subscription services will likely be a major part of tomorrow’s consumer economy. That being the case, the stakeholders in this upcoming industry should start to embrace the latest technologies to solve the prevailing challenges. NFTs are a good starting point given their value proposition in enabling decentralized market ecosystems where users no longer have to hold on to unused subscriptions.