Subscription Models Flourish Amid Pandemic, but User Fatigue Grows

The advent of subscription models has marked a significant evolution in the service industry, particularly thriving during the COVID-19 pandemic. Leading companies like Netflix, YouTube, and Spotify have more than doubled their revenues over the past six years, establishing themselves as successful value generation models within the marketplace.

Subscription economics have become an essential component of modern life. A 2023 survey conducted among American households revealed that on average, each household subscribes to four services, amounting to approximately $1,000 annually. However, this growth trajectory is also accompanied by increasing user fatigue.

Netflix has regularly increased its monthly subscription fees and recently made family viewing more restrictive. Similarly, YouTube Premium significantly hiked its subscription prices in July last year. These changes leave consumers with stark choices: accept the price hikes or cancel their subscriptions.

# Access Protocol: Addressing Subscription Economy Drawbacks with Blockchain

Access Protocol emerges as a solution to the burgeoning challenges in the subscription economy by fostering a symbiotic relationship between subscribers, creators, and platforms through blockchain. Developed on the Solana mainnet, Access Protocol is designed to bridge the gap between creators and consumers.

Creators can establish staking pools with Access Tokens ($ACS) and offer their content. Consumers, in turn, stake tokens in these pools to gain two main benefits: ‘consumption of content’ and ‘staking rewards.’ A one-time staking of the minimum required amount allows consumers to continuously receive subscription benefits and staking rewards. By simplifying the traditional ‘subscriber-platform-creator’ model to a ‘subscriber-creator’ dynamic, Access Protocol proposes a mutually advantageous relationship.

# Tokenomics: Driving Creator Incentives and Consumer Accessibility

Creators benefit from staking rewards proportional to the size of their staking pool, incentivizing them to produce high-quality content. This system also facilitates differentiation and loyalty management through airdrops and VIP systems based on staking amounts.

For consumers, Access Protocol eliminates the need for entering payment details or periodic fee payments, requiring only a wallet connection and staking to access services. Post the V2 upgrade in April, holding an NFT subscription grants access to subscription benefits and rewards, significantly enhancing user accessibility.

The economic efficiency for consumers is also maximized. Unlike traditional models where consumers pay a set fee regardless of content consumption, Access Protocol offers staking rewards even if the content is not consumed, making it a more attractive option compared to conventional subscription models. Additionally, the model provides benefits proportional to content usage, even if token prices decline.

# Strategic Partnerships and Market Growth

Access Protocol has fostered growth through strategic partnerships with industry leaders such as Coingecko, The Block, and WuBlockchain. As of December 2023, the ecosystem boasts 129,000 subscribers and $16 million in staked assets. The number of creators has grown to 137, reflecting increasing participation and confidence in the platform.

Notably, only 41 percent of subscribers stake the minimum amount, with the majority contributing more to support their preferred creators. This trend underscores the platform’s success in building direct relationships between creators and subscribers.

Currently, Access Protocol is leveraging its V2 upgrade to support NFT subscription trading, perpetual subscriptions, and a referral system to invigorate its ecosystem. Beyond system enhancements, the platform is actively onboarding diverse and verified creators, continuously expanding its token utility.

The ongoing expansion and discovery of token utilities remain central to Access Protocol’s strategy, indicating their steady progress in achieving their objectives. As blockchain technology diversifies across various content sectors, the inherent network effects of subscription platforms will likely distinguish winners in the space. Access Protocol’s ability to sustain attractive onboarding in the content subscription domain is thus a critical point of interest.

Park Hyunjae, Block Media