[Opini] Why do modern paid software mostly use a subscription model?

It used to be that buying software was simple. Come to a computer shop, buy a CD, install it on your laptop or PC, then you’re done. Once paid, you can use it for years. Many people still remember the time when buying Windows, Microsoft Office, or a design application was enough to do it once. After that, just use it until the computer breaks down or the software feels out of date.

The difference is that the situation has changed completely recently. Almost all modern software uses a subscription model. Starting from design applications, cloud storage, video editing, music, to daily productivity applications. Even software that used to be known as “buy once for life” is slowly switching to a monthly or annual subscription system.

These changes often irritate users. Many users feel forced to spend money continuously just to use the same application. The question is, why do software companies now like the subscription model so much? Let’s discuss it in this article.

Why does modern software diligently use the subscription model?

The first thing that needs to be understood is that today’s software no longer stands alone. It used to be that applications ran entirely on the user’s computer. Now most software is connected to the internet and uses cloud services. This means that the company must provide a server that is active 24 hours a day, a data security system, account synchronization, online storage, and continuous updates. All of this requires routine costs that are not small.

If a company only relies on one-time sales, their income will be unstable. It seems greedy, but actually there is a valid reason. Meanwhile operational costs continue to run every day. Subscriptions make a company’s cash flow more stable so they can keep the service alive.

The easiest example can be seen from cloud storage services. When users store photos, videos, or documents on company servers, the company has to pay for data centers, electricity, internet bandwidth, and security systems. These costs appear every month. So it makes sense that users are also asked to pay periodically.

Developer pressure is increasing, but users feel it’s unfair

Apart from operational costs, the subscription model also makes it easier for companies to develop software continuously. Previously, most software had long release cycles. New versions appear every two or three years. Now users want fast paced. Bugs should be fixed immediately. New features must be available regularly. Security gaps must be closed immediately, without compromise.

This pressure makes modern software development much more intense than in the past. Because there is regular income from customers, companies can maintain a team of developers, designers and technicians in the long term. They don’t have to wait for “release season” to earn income.

But on the other hand, subscriptions also actually change the way people buy software. The price of professional applications used to be very expensive. Adobe Photoshop, for example, was once sold for millions of rupiah for one license. Now people just pay monthly. For some users, it certainly feels lighter because they don’t need to spend a lot of money at the start. But when the software has been used in the long term, the total subscription cost can be much more expensive than buying the software one-time.

Because of this, many users feel that this type of model is unfair. They feel like they don’t really own the software. Once you stop paying, access is automatically lost. Even work files are sometimes locked. People now not only pay for electricity, internet and credit, but also Netflix, Spotify, Google Drive, Microsoft 365, Canva, Zoom, and even photo editing applications. In an economy like this, adding one more monthly expense feels very heavy.

For people with a dollar income, it may still feel light. However, in developing countries like Indonesia, subscriptions often feel unattainable. The rupiah exchange rate makes foreign software subscription fees quite expensive. Especially if you only use it occasionally. Because of this, alternative trends have emerged such as open source software or one-off applications from small developers. This way, they feel more comfortable buying out rather than continuing to pay.

Coercion Tricks to Not Run Away

But from a company’s perspective, subscriptions have another very important advantage, namely keeping users in their ecosystem. When someone has subscribed to one service, usually he will use another service from the same company. For example, cloud storage, email, document editor, and even AI features. Over time, users become dependent because all their data and work habits are connected there.

From a business perspective, this is a genius trick. Today’s big technology companies no longer just sell software. What is being sold is an ecosystem. Subscriptions create an ongoing user and company relationship, not a one-time transaction.

Apart from that, there are investor factors that also have a big influence. In the world of startups and technology companies, recurring revenue is considered more attractive than one-time sales. Stable monthly income is preferred by investors because it is much more stable. Once one company succeeds with this clever trick, it’s no wonder many companies are racing to change their business model towards subscriptions.

AI will also accelerate the shift to a subscribe model. Many modern software now adds AI features that require large amounts of computing on the server. As long as AI processes remain expensive, subscriptions will likely remain the main choice for technology companies.

So, the subscription model emerged not solely because companies wanted to squeeze users. There are major changes underway in digital infrastructure, cloud costs, security, and modern software development patterns. But technology also clearly sees subscriptions as a highly profitable money machine. There are quite a few who are too greedy and end up making users tired and considering subscriptions to be something that is not good for the software industry in the future.

What do you think? Do you agree that the software purchasing model will return to a one-time purchase system like before? Or with good intentions, subscriptions are actually not that bad? Give me your opinion, okay?

Get cool information on Gamebrott related to Tech or similar articles that are no less exciting from Andi. For further information and other questions, you can contact us via author@gamebrott.com.