Subscriptions as a Revenue Model: Evolution, Comparisons, and the Impact of Generative AI

Since the emergence of Software as a Service (SaaS) and cloud computing, the subscription business model has experienced a major shift. This paper accelerates the evolution of subscriptions, examining Business-to-Consumer (B2C) and Business-to-Business (B2B) subscriptions, and explains how the structure of Generative AI (GenAI) product subscriptions is affecting and changing the subscription landscape. It also recommends ways companies can improve customer lifetime value.