The world is entering a new era that could be called THE END OF OWNERSHIP

What does that mean?

Simply put, product ownership and the old product economy is quickly becoming a thing of the past. People are becoming less interested in filling their homes with physical possessions and more interested in convenience. They don’t want to deal with upfront costs, the hassles of maintenance, and the frustration of obsolescence. Why buy and own something if there is an easier and more convenient way to get the same or even better outcome? In other words, why be burdened by owning when you can subscribe or rent by making an affordable monthly payment?

SUBSCRIPTION ECONOMY BLOG VIDEO

People are realizing that our homes don’t have to be cluttered with objects, be that overflowing shelves of CDs, DVDs, and books; instead we subscribe to online or virtual entertainment. Many people today don’t even own cars or bikes, instead, we subscribe to them as services.

What’s driving this change? Consumer expectations are changing, and they increasingly value access, and convenience over ownership. We want the freedom to access services and use them anytime, anywhere. We want the latest technology or product model available at our fingertips at all times. We demand choice in how we pay, flexibility, and the ability to tailor services to meet our specific needs. And thanks to the Subscription Economy, all of this is now easily possible. Subscriptions and rentals free people from the burden of ownership.

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There are some fascinating trends that are driving growth in the Subscription economy.

Sales of CDs and song downloads continue to decline, but the music industry is in its fifth year of consecutive growth, driven mainly by digital subscriptions. Global auto sales are down almost 3% from 2017, but overall miles driven are on the rise. It’s not that people are not driving less; they are just doing it differently by using car subscriptions, ride-sharing services, etc. When was the last time you had a physical newspaper delivered? Newspaper sales declined to around 30 million copies last year, roughly on par with numbers from the 1940s! However, digital news consumption on mobile phones has grown by over 300%. We have the “newspaper’ at our fingertips anytime, and anywhere, and we’re no longer stuck with a pile of old newspapers to recycle.

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Convenience has become the new norm, consumers are looking for affordability and have a growing sensitivity to their impact on the environment, renting or subscribing addresses both. If you’re looking to free yourself and your family from carrying the burden of maintenance and upkeep of equipment such as a furnace or air conditioner, renting with service, maintenance, and emergency calls included is far more convenient, and frees up more time to do the things you would rather be doing.