“You must believe before everything else that the revolution must come, that there is no other choice.” ~Abdullah Öcalan
There is a future where you may pay thousands of dollars towards one object, and you’ll never come close to owning it yourself, and that future is a lot closer than you think. We are living in a world more technologically advanced than any previous generation could ever conceptualize, but that comes at a cost that we are literally paying every day.
We are moving into a subscription-based economy, and the end of ownership is becoming more and more visible. The term “subscription economy” comes from the new reality that things that were once obtainable by purchase and ownership are now only able to be “rented.” In the past, owning a physical CD meant you had access to your music whenever you wanted. Now with the addition of services like Apple Music and Spotify, you no longer own your music; you can only “rent” it. This migration is visible in not just music but also visual entertainment, software, and even car rentals.
Data from a recent survey shows that 40% of people benefit from over 10 monthly services. And according to research from C&R, the average American family spends more than 2,000 dollars a year on subscriptions, and 42% of those people still pay for subscriptions they don’t even use. “More than half of my subscriptions probably come from free trials I never canceled,” Abi Robion (12) states. This data shows how ingrained subscription-based services are in our lives.
If you live in the modern world, there’s a chance that you or a close family member is paying for a monthly subscription. You probably benefit from your parents’ monthly payment to Netflix, or you enjoy music way more without those pesky ads, so you pay $11.99 a month to listen to uninterrupted music on Spotify. Maybe you appreciate the value of next-day delivery so you don’t have any issue paying $14 a month for the convenience. But subscriptions have been so integrated into our daily lives we often don’t realize the ridiculous things we pay for. Would you pay a separate monthly fee to use your smart fridge? Or to remotely open your garage doors? How about a $12 fee to track all of your subscriptions? These are no longer just conveniences; they represent how things we could once own are locked behind a subscription wall.
Truthfully, there is nothing wrong with a subscription-based music service. Paying an artist for their work is an inherently good thing to do, but subscription services can quickly get out of hand; for example, can you imagine yourself paying $5 a month to use a pair of wireless earbuds? That’s exactly what Nurabud suggests you do. Nurabud, a brand of wireless earbuds, takes subscription services to a new and unbelievable level. For $5 a month, you can only use these earbuds through Nuranow. Make no mistake, Nurabuds are not a rent-to-own item; no matter how long you pay money towards the product, you can never own them. But that’s not the most ridiculous part; if your earbuds are stolen, you must send Nura an official police report and pay a $20 fee to replace them, which leads consumers to believe that the earbuds themselves are only worth $20, meaning every 4 months you are paying the full price of the product. You might be thinking of ordering the earbuds and skipping out on your monthly bill, but Nura has a plan for that. If you do stop paying your dues, they will remotely shut off your device, preventing you from using it, as well as continuing to bill you monthly for the earbuds. This outrageous business model is a great example of the lack of ownership in a subscription economy.
But why are companies pushing subscriptions so much?
It’s simple: They provide predictable, recurring revenue that will help them accurately forecast income. Subscription services also lower the amount of money a company will spend trying to gain new customers. If customers are subscribed, it is likely they will stay subscribed, meaning less control for the consumer and more for the company. Businesses use tactics to manipulate consumers, like comparing the subscription to the cost of a cup of coffee or hiding desired features of an app behind a paywall. “I get so annoyed every time I download a new app, but it makes me subscribe to use any of the features,” Aejanae Humphrey (12) remarked. To their credit, it’s easy to see why a company would want to utilize these techniques, but it’s unfortunate for consumers who would rather pay a one-time fee to enjoy a quality product.
Oftentimes companies that use these greedy tactics to make more money put their money before the satisfaction of the customer. Loyal Spotify user and paying member Abby Philey (12) was originally happy with the service she got from Spotify; she was swept off her feet by the sleek design, personally curated playlist, and vast catalogue of professionally recorded audiobooks. But her experience was quickly soured when, halfway through an audiobook, the app stopped playing, telling her she had “run out of listening hours.” “I don’t think I’ve ever been more frustrated in my life…if I can’t even listen to the full book, then what am I paying for?” She expressed, understandably annoyed. The only way to continue listening to her book was to pay an extra fee for 10 more listening hours, a fee that was more than her monthly subscription alone.
Abby isn’t the only customer to complain about Spotify’s shortcomings. Nearly 500 other paying customers have come forward to voice their complaints. For a company that has made more than 1 billion dollars since its release in 2006, frankly, these flaws are tasteless.
To conclude, the shift to a subscription-based economy is undeniably transforming the way we interact with products and services. Yes, platforms like Netflix and Spotify provide convenience, but it’s important to understand all the implications of this model. The purpose of this article is not to scare you into canceling your subscriptions but rather to raise awareness of the financial choices we make every day as consumers. By educating yourself, you can make more informed choices and be mindful of your spending habits. Oftentimes large companies prey on the uneducated to earn their money, knowing the facts can be your best weapon against a subscription-based economy.