Which statement describes the subscription revenue model?

Which statement describes the subscription revenue model?

• A. One-time purchase price with no recurring charges.
• B. Charges customers based on usage.
• C. Charges regular fees for ongoing access.
• D. Basic product free with paid upgrades.

Answer: (C)

A subscription revenue model charges customers on a regular basis for ongoing access to a product or service. This creates recurring revenue, usually billed monthly or yearly, and keeps the customer connected to the offering as long as payments continue. It’s common for software, streaming services, and membership sites, where the value comes from ongoing access, updates, and support rather than a one-time hit. The other patterns don’t describe this approach: a one-time purchase involves a single payment with no ongoing charges, which doesn’t reflect ongoing access. Pricing by usage bills based on how much the customer uses, not for continuous access. A free base with paid upgrades offers a starting free tier and optional paid features, rather than a regular fee for ongoing access.

A subscription revenue model charges customers on a regular basis for ongoing access to a product or service. This creates recurring revenue, usually billed monthly or yearly, and keeps the customer connected to the offering as long as payments continue. It’s common for software, streaming services, and membership sites, where the value comes from ongoing access, updates, and support rather than a one-time hit.

The other patterns don’t describe this approach: a one-time purchase involves a single payment with no ongoing charges, which doesn’t reflect ongoing access. Pricing by usage bills based on how much the customer uses, not for continuous access. A free base with paid upgrades offers a starting free tier and optional paid features, rather than a regular fee for ongoing access.