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MB

Michael Babineau

05/30/19

@ Y Combinator

Amazon is increasingly resembling a subscription business, with a growing reliance on Amazon Prime members for revenue.

Video

YC

Analyzing Billions of Transactions to Understand Consumer Behavior - Michael Babineau and Kevin Hale

@ Y Combinator

Analyzing Billions of Transactions to Understand Consumer Behavior - Michael Babineau and Kevin Hale

05/30/19

Related Takeaways

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Michael Babineau

05/30/19

@ Y Combinator

Even former Amazon Prime subscribers continue to spend more on Amazon after their subscription lapses, indicating lasting behavioral changes.

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Chris Best

05/15/19

@ Y Combinator

Subscriptions are powerful because they feel less expensive than a flat fee, leading to more people willing to pay over time.

AW

Alexandr Wang

11/03/23

@ The Logan Bartlett Show

Amazon's evolution from an online bookstore to the largest data center provider illustrates how unpredictable innovations can drive a company's market value, with AWS being a prime example.

HI

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

The shift from selling products to offering services or subscriptions can lead to predictable revenue streams and increased customer retention.

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Gustaf Alströmer

06/27/19

@ Y Combinator

Paid marketing has shifted from free channels to paid channels, making it more competitive, especially for subscription services and e-commerce.

HI

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

In a SaaS business model, long-term subscriptions change the visibility of revenue, allowing for more accurate forecasting based on customer retention and upsell rates.

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Macy Mills

05/17/25

@ a16z speedrun

Subscription-based pricing offers predictability for both businesses and customers, often combining user-based pricing with monthly or annual subscriptions.

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Aaron Levie

02/20/25

@ Y Combinator

Successful companies are increasingly replacing traditional services with usage-based models, leading to rising revenues without the need for annual contracts.

HI

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

Creating a business model that allows for free distribution of a product can lead to significant revenue through subscription services, as demonstrated by the antivirus software model.