Chapter Chapter 1 1 The Subscription EconomyThe Subscription Economy TodayT,oda everythiy, everything is nmgoving is moving to a subscto a subscriptioription econn eocmoyn:o mmeyd: ima, etrdania,s tran-s - portatioportation, agrin, caultgriucreult, uherea,lth he acalthre , cacorensum, consumer gooer ds,goo andds, andeduca education. tion. CompanieCompanies haves havewoke won ukpe nto u thep to f acthet thfacatt peoplethat people want wan outct omeoutcs,ome not s, not ownershiownership. Theyp. Theywant wan custot cumsizedtom eizedxperie experiences,nc andes, theyand theywant wan contti cnountin-u - ous improvementous improvement, not pl, nannot pleannd obsed oleobsscoleencsce.ence. One simpleOne simple but effe butc tiveeffe cwativey ofwa lookiy of nlookig atn thig as ti sthi thsa its cthomatp canomiepsan haievse have startedstarted to sell to out sellc omeoutcs,ome usings, us theiring theirproduc prot ducas at m asea ans m eato nsan to end. an Ubend.er Uber and Landyft sell Lyft yo sellu theyou rid thee, ridnote ,the not c thear. C caaterpillr. Caterpillar useadr utose sdell to m sellover msover to s to constructionconstruction compa companies. nNoies.w Notheyw theyask them ask them how homucw hmuc dirth they dirt theyneed need moved.moved. Health He traalthck ertrasc areker sthro are wthroingw inin theirg in theiractu alac protuald uproct dforuc tfree for ifreen in returnret forurn afor 12 -am 1onth2-m onthsubs criptiosubscription to ntheir to theiranalyti anacslyti plcsatfor plm.atfor Tem.sla s Teslas updaupdte theatem theselvemselves withs wtheith lathetes tl atetecshnologiet technologies ands bandeco bmeec osmame rtesmar rter over overtime ,tim so eyo, sou dyoonu’ td noeen’td n toee bud toy abunothery another car. A camar. zoAman izos rollin isn rollig ount g out retailret tecahnologyil technology that letstha tyo letsu wa yolku waintolk ain stotor ae s, torpicek, uppic kw uphat w yohaut n yoeeud n, eed, and leavande leav. e. In short,In short, this ithisn’ts ias nsoft’t awa softrewa storyre s antoryymor anymore. Thee. tTheable t abstaleke sst ahkaevse have beenbee raisned for every raised for every indu sindtry.ustry. The New PrioritiesThe New Priorities We useWe thi uses di thiagras dimagra a lotm aat lot Zu aort aZ.u Itor saumma. It summarizes rizethe ss hiftthe. sOhiftn the. On lef thet left side, sidcome,p caoniempsa uniesesd utose fod custo fo ocusn getting on getting a pro aduc prot ducto mat tork maet — arketlig — aninligg ning their theirsales salesand distri and distributiobun ctiohannn chelanns aroelunds aro sundpec ifispec procifiducc prot liducnes.t li Tnoedas. yT, oday, they theyrecognize recognize that custhatomert customers spesnd spe theirnd theirtime tiacmroe ssac manross yman channy chelanns, els, 1414 1414