Subscribed

Have you ever wondered why you can stream endless movies but hardly buy DVDs anymore? Or why owning a car feels old-fashioned compared to summoning one on-demand? In Subscribed, Tien Tzuo argues that the most profound shift in modern commerce is moving from selling products to delivering ongoing services. He calls this transformation the Subscription Economy—a radical reimagination of business itself that places the customer, not the product, at the center.

From Ownership to Access

According to Tzuo, customers no longer crave ownership—they crave outcomes. We don’t want to own a DVD; we want stories at our fingertips. We don’t want a car loan; we want mobility. This paradigm shift is demolishing the industrial-age product economy, where businesses pushed units through linear supply chains, measured success by margins, and handed customers one-time transactions. Instead, services now thrive on relationships, personalization, and recurring revenue. Subscription companies—from Netflix to Salesforce—start every quarter with revenue already in hand, enabling sustainable, predictable growth.

This reinvention echoes Peter Drucker’s insight that companies manage what they can measure. In the past, businesses measured units sold. Today, in the Subscription Economy, they measure relationships maintained. The future belongs to companies that start with the customer and work backward to design an experience that continuously delivers value.

Why It Matters Now

For the first time since the Industrial Revolution, Tzuo says, business models are being rewritten. Fortune 500 giants that once sold products—GE, IBM, Xerox—are morphing into service-driven enterprises. Meanwhile, digital natives like Amazon, Apple, and Netflix were built from the start around ongoing access and consumer insight. The Subscription Economy doesn’t just change pricing; it changes culture. It reorients organizations to focus on lifetime relationships rather than quarterly results.

This shift has vast economic implications. File it under survival: half of Fortune 500 companies from the year 2000 have disappeared. As Tzuo highlights, companies that understand their customers’ data—and use it to deliver experiences, not objects—will dominate the next century. Business transformation isn’t optional; it’s existential.

Inside the New Model

In this book, Tzuo explores how the subscription model plays out across industries. You’ll see retail stores reinvent themselves as experience zones. Media companies like Netflix and Spotify liberate creators from one-hit dependency. Automakers like Hyundai and Volvo offer flexible car subscriptions. Newspapers, from the Financial Times to The New York Times, abandon advertising addiction for direct reader relationships. Even manufacturers like Caterpillar and Komatsu are turning physical products into platforms for ongoing digital services.

Alongside stories of innovation, Tzuo dissects the new corporate anatomy required to thrive in this environment. Every function—product, marketing, sales, finance, and IT—must be redefined. The result is a living organization that listens, iterates, and evolves continuously. Companies must learn to stay in “beta forever,” embracing agility over perfection.

The Promise of a Circular Relationship

Tzuo summarizes the Subscription Economy with a simple diagram: the shift from a straight line to a circle. The old model was linear—build, ship, and forget. The new model is circular—engage, deliver, measure, and improve. Each subscriber forms a continuous loop of data and feedback that drives innovation. When companies follow their customers, they don’t need to chase hits—they create happiness and predictability instead.

Ultimately, Tzuo’s message is both prophetic and practical: your customers are no longer hiding at the end of your distribution chain. They are your partners in creation. To succeed, you must stop selling products and start offering experiences that evolve. The question isn’t whether your industry will join the Subscription Economy—it’s how soon.

If you think retail stores are dying, Tien Tzuo wants you to think again. In the Subscription Economy, he argues, physical retail isn’t vanishing—it’s transforming. The shift isn’t from physical to digital; it’s from product-focused transactions to customer-centered experiences. Retail isn’t about shelves anymore—it’s about relationships.

From Product to Experience

Tzuo begins by contrasting Amazon and Walmart. Both dominate American retail, but only one starts with the customer. While Walmart historically measured success by inventory turnover, Amazon built around data and identity—tracking every preference, purchase, and click. Jeff Bezos’s mantra, “put the customer first,” embodies this reversal of perspective. The result? Predictable revenue and profound insight into individual behavior. In the Subscription Era, no company can afford to treat customers as anonymous cash register receipts.

The Rise of Subscription Retail

Retail is reinventing itself through subscription boxes and membership-based experiences. Birchbox personalizes cosmetics; Dollar Shave Club sends razors on repeat; Stitch Fix curates outfits via algorithms. Each model delivers ongoing value and direct engagement. Gone are the manipulative “negative option” traps of old mail-order clubs like Columbia House. Modern subscription retailers win loyalty through transparency and trust.

The key principle is to know your customer. Brands that do—like Warby Parker, Bonobos, and Casper—use physical spaces not for sales but for discovery. Their stores are showrooms, community hubs, and content experiences. Nordstrom Local offers stylist consultations and manicures but no inventory. Amazon’s bookstores curate recommendations and ratings cards from its website, echoing Netflix’s algorithmic personalization in a physical format.

Customer Identity Is the New Storefront

Tzuo introduces the idea of the “customer ID”—a universal profile that bridges retail channels. Apple’s integration of Apple IDs across devices and stores exemplifies this approach, as does Starbucks’ digital rewards app. Your ID becomes your passport through an ecosystem. The more companies know about your habits, the better they can surprise and delight you with relevant experiences. For retailers, that means data replaces aisles as the most valuable asset in-store.

Building Experiences, Not Empty Malls

As Tzuo points out, the so-called “retail apocalypse” only applies to bad retail—the kind trapped in product-thinking. Successful malls, like Westfield World Trade Center in New York, are reinventing themselves as experience destinations, mixing entertainment, dining, and discovery. Even 329-year-old Husqvarna joined the revolution by offering tool subscriptions out of Battery Box kiosks—customers borrow high-end equipment instead of buying. It’s convenient, sustainable, and deeply customer-centric.

In short, retail’s future isn’t about closing stores but about flipping the script. Instead of using stores as warehouses for products, companies use them as stages for experiences. The modern retailer wins not by selling units but by cultivating subscriptions—ongoing relationships where every visit adds data, insight, and delight.

Remember when music labels or Hollywood studios defined what we consumed? Tzuo argues that streaming has launched a modern renaissance—a “new golden age of media”—where abundance beats scarcity and creativity thrives without the tyranny of mass-market hits. The Subscription Economy unchains creators from episodic revenue, letting them reach audiences directly and rely on recurring income rather than one-time success.

From Blockbusters to Portfolios

In Hollywood’s heyday, studios relied on the “portfolio effect”: a few hits would pay for hundreds of misses. But after decades chasing blockbusters like Star Wars, the system became brittle. Streaming platforms like Netflix reject that mindset. Instead of betting everything on tentpoles, Netflix invests billions in diverse original content—riskier, smarter, and more niche. Shows like Stranger Things and Orange Is the New Black would never have survived primetime TV. Yet they flourish on subscription platforms that value engagement over ratings.

The Implosion and Rebirth of Music

The music industry followed a similar path. After the chaos of Napster and file-sharing, Steve Jobs’s dollar-per-song model briefly restored order—but streaming truly revived it. Spotify and Apple Music replaced piracy with convenience. Artists like David Bowie predicted this shift decades earlier, describing music as “running water or electricity.” Platforms like Patreon now let creators earn steady subscriber income while fans become active collaborators.

Perhaps the best illustration is Kanye West’s The Life of Pablo, which Tzuo calls the first “SaaS album.” Kanye kept revising tracks after release, integrating fan feedback in real time. The artist became a developer, and the album became a living service—a perfect metaphor for agile innovation.

Streaming's Broader Ripple

Streaming’s subscription stability has spilled into every media form. Anime network Crunchyroll, born as a piracy site, turned legitimate by offering fans access and community. Sports streaming platform DAZN lets audiences subscribe to live matches instead of paying cable fees. Even ESPN is building its own SVOD service as cord-cutting transforms households. Subscriptions are converting unpredictable ad-based media into steady, global ecosystems of fandom.

A Creative Renaissance

Freed from mass-market compromises, artists can now create content for passionate niches. The Subscription Economy fosters experimentation through direct feedback loops—listeners, viewers, and readers become ongoing participants. As Tzuo puts it, “Let a thousand niche Netflixes bloom.” In this new golden age, sustainability replaces spectacle. Quality rises when creators no longer gamble on impermanent hits—they build permanent homes in their audience’s hearts.

Buying a car? Tien Tzuo now thinks of it like signing up for a mobile plan. In the Subscription Economy, transportation—once a patchwork of ownership hassles and one-off transactions—is evolving toward seamless access. From carmakers to airlines, travel is transforming from product delivery to mobility as a service.

Cars Without Ownership

Major automakers are pioneering subscription programs: Hyundai’s Ioniq offers cars for a monthly fee; Porsche and Cadillac let subscribers swap vehicles at will; Volvo’s Care service includes insurance, maintenance, and concierge delivery. Tzuo emphasizes the distinction between leasing and subscribing—a lease binds you to one car, while a subscription provides freedom, flexibility, and ongoing care. Carmakers realize that millennials value convenience over possession.

Uber: The Proto-Subscription

Uber and Lyft embody subscription principles even without contracts. They store your payment information, learn your patterns, and prioritize loyalty. Eventually, Uber introduced flat-rate plans—proof that predictable monthly mobility trumps unpredictable fares. The result is an intimate data-driven relationship, mirroring the continuous service logic that underpins the Subscription Economy.

Mobility Becomes Connected

Transportation is also becoming intelligent. Cars now resemble smartphones on wheels, with data flowing through sensors and cloud services. The interplay between Silicon Valley and Detroit defines this frontier. While tech giants possess platform expertise, automakers like Ford and GM hold distribution, scale, and safety know-how. The winners will integrate both—embedding subscriber identities into every journey. Ford’s FordPass app already syncs parking, maintenance, and vehicle warming at a touch.

A Flying Subscription Model

Beyond roads, airlines are embracing subscriptions. Surf Air offers unlimited flights for a flat monthly fee—the “Netflix of Aviation.” By making revenue predictable, Surf Air avoids the feast-or-famine dynamics of ticket sales. As one executive noted, “We know our revenue on day one of the month.” Like Netflix, this stability unleashes creativity in scheduling and customer service.

Transportation as Seamless Access

From France’s SNCF unlimited train passes to Helsinki’s Whim app that blends ride-share, subway, and bike routes, subscriptions are dissolving barriers between modes of travel. Access replaces ownership. The future of planes, trains, and automobiles isn’t about vehicles—it’s about frictionless freedom. Companies that know their riders will transform commutes into connected journeys and redefine what it means to move.

What if your business never finished building its product—and that was actually a good thing? Tzuo calls this idea “staying in beta forever.” In the Subscription Economy, innovation becomes a continuous cycle of improvement, guided by customer feedback, user data, and agility. Instead of releasing a finished product and moving on, companies iterate endlessly to enhance value.

Gmail's Endless Beta

Google’s Gmail was labeled “BETA” for five years. Why? Because for subscription-based products, beta isn’t a test—it’s a mindset. Gmail evolved daily, integrating user requests and erasing the idea of finality. As Tzuo notes, when enterprises demanded a “non-beta” version, Google simply changed the logo. The message: perfection doesn’t exist—continuous evolution does.

Kanye West and the SaaS Album

Kanye West’s The Life of Pablo exemplifies creative iteration. He kept editing tracks post-release, treating his album like software updates. Fans streamed each version, contributing insights through social feedback—essentially acting as beta testers. This “minimum viable album” demonstrated that art and technology both thrive in dynamic loops where customers shape outcomes.

The Agile Snack Factory

British company Graze turned data-driven iteration into a physical process. They send customized snack boxes to subscribers, gather feedback, and adjust flavors in real time. Their factory runs on an agile model—production responds to user behavior rather than market speculation. It’s industrial flexibility powered by consumer intelligence.

Netflix and Data-Led Creativity

Netflix replaces pilots and test audiences with precision data. It monitors how viewers watch, pause, and binge. That information guides content investment. Every interaction becomes feedback for iteration. As executive Todd Yellin explains, “Popularity is no longer the measure of success—data is.” Staying in beta lets Netflix predict what viewers will love next and keeps subscribers engaged indefinitely.

Beyond Tech: From Baristas to IDs

Even Starbucks applies this logic. Its mobile app tracks millions of transactions daily, adjusting store operations around demand. With 13 million rewards members, every purchase becomes data for continuous service refinement. In Tzuo’s words, when your subscribers become innovation partners, your business never stagnates. Beta never ends—it scales joyfully.

Turning a static company into a fluid subscription organization requires more than new pricing—it demands a cultural revolution. Tzueo explains how every department, from finance to IT, must transform its mindset. In traditional corporate structures, silos block collaboration. In the Subscription Economy, cross-functional unity around the customer becomes vital.

The PADRE Operating Model

Tzuo’s PADRE framework reimagines how businesses operate. It stands for Pipeline, Acquire, Deploy, Run, and Expand, supported by People, Product, and Money. Each subsystem represents a stage of the customer journey—awareness, acquisition, onboarding, engagement, and growth. These areas must coordinate seamlessly, sharing data and insights to align around customer success.

Breaking Down Silos

In legacy companies, departments functioned like separate stovepipes. Marketing chased leads; sales closed deals; finance tracked costs. Subscription organizations tear those walls down. Teams collaborate around subscriber metrics—retention, lifetime value, churn reduction—rather than product shipments. The key question becomes: how do we help the subscriber succeed over time?

A Happier Business

When this circular system works, a company becomes lighter, faster, and happier. Predictable revenue fosters creativity, not pressure. Employee focus shifts from transaction to transformation. “Subscriptions are the only model based on customer happiness,” Tzuo writes. When customers thrive, businesses thrive. That virtuous circle powers exponential growth.

The End of Product Culture

Ultimately, a subscription culture replaces assembly-line thinking with relationship thinking. Teams align around one question: how do we continuously earn trust and deliver impact? PADRE operationalizes empathy at scale—the blueprint for turning customer success into enduring growth. This is not just a business model; it’s a human model for the next era of enterprise.