Recurring Revenue: A History of Disruption [Infographic]

RECURRING2 REVENUE A HISTORY OF DISRUPTION Recurring revenue lately - and for good reason. Implementing a recurring revenue stream - as opposed to a one-off licensing or transactional model - is a proven way to grow your business and disrupt entire industries. a popular buzzword Most people associate modern companies like Netflix and Hulu with this phenomenon. While it's certainly true that they were able to disrupt their respective industries with an offering built around recurring revenue, they're by no means the first to do so. I IN REALITY, RECURRING REVENUE HAS BEEN A DISRUPTIVE FORCE IN BUSINESS FOR NEARLY A MILLENNIUM. 1440 Newspaper Subscriptions & Periodical Like the rise of the cloud today, the advent of the printing press in the 15th century allowed individuals to efficiently increase the production rates and volume of their product and sell it on a more regular basis to subscriber bases that produced a recurring revenue stream for them. TELEPHONE SERVICES IX76 Alexander Graham Bell patented the telephone in 1876 and formed Bell Telephone to license local telephone exchanges in US cities. AT&T was formed in 1885 to connect local Bell companies and quickly established a monopoly on the market, charging individuals a recurring monthly fee to access the service. HOME SECURITY SYSTEMS REPLACE YY7'S TRADITIONAL LOCK AND KEY MODEL 1990's 2 3 4 5 8 Home security evolved over the course of the 20th century. Traditional lock and key models were increasingly replaced by digital home security systems – which in turned offered companies like Ingersoll Rand an additional revenue stream via a recurring monthly fee that was charged to maintain these systems. ENTER EARLY 2000's ON-DEMAND VIDEO RENTALS Netflix began offering mail-based video subscriptions for a flat monthly rate and disrupted the traditional one-off transactional models of Blockbuster, mom and pop video shops. Netflix later evolved to streaming web-based videos as additional revenue stream. MID-2000's I STREAMING MUSIC SERVICES I The rise of online consumption also allowed Spotify to disrupt the online music industry, which had been dominated by the likes of Virgin and, to a lesser extent, Amazon. LATE-2000's DIGITAL GAMING One of our oldest pastimes, gaming, took a big step into the modern age when companies like Zynga and Digital Chocolate began monetizing video games by charging monthly subscriptions and additional charges for e-coins, which only have value in the virtual gaming environment. "IN-A-BOX" SUBSCRIPTIONS The rise of e-commerce has allowed traditional industries like clothing and groceries to develop recurring, on-demand services by which you can order goods online and have them regularly shipped to your residence. Consumers enjoy greater flexibility afforded to them by being able to shop at home and have goods delivered directly, and retailers enjoy significant new revenue streams that help better project future growth. To learn more about how recurring revenue models can help you grow your business today, visit www.ariasystems.com and follow @AriaSystemslnc on Twitter. aría get paid. again and again. SOURCE: http://som.csudh.edu/cis/Ipress/471/hout/telecomhistory/ http://som.csudh.edu/cis/lpress/471/hout/telecomhistory/