house is that Netflix has recurring revenue . Netflix has over 100mn subscribers that pay the company more than $ 100 a year – that ’ s around $ 1bn in recurring revenue . Hollywood has to gamble and say ‘ We ’ ll spend $ 200bn on a movie and maybe we ’ ll make money , but maybe it ’ ll be a bust ’ whereas Netflix already has already acquired customers . They can use part of their $ 10bn in recurring revenue to buy new content . This ensures that users continue to enjoy the service and it helps them to acquire new customers .” With clients such as the Financial Times , Schneider Electric , Ericsson , Ford , the Guardian and Trivago under its wing , Zuora ’ s customer base is a testament to the variety of industries where the subscription economy has taken root . Interestingly , Tzuo also points out how six of the top ten car manufacturers around the world also use Zuora ’ s services . “ It ’ s unusual but it ’ s the same premise . Car ownership is declining because , thanks to companies like Uber and Lyft , people are realising that they can have a better experience elsewhere . With the rise of 4G and eventually 5G , McKinsey says there ’ s $ 1.5trn of new revenue streams that could be there for the taking for car companies if they can figure it out . It could be streaming movies , it could be services that help you find a garage . It even could be subscribing to a self-driving car service .”
Shifting to a subscription business model not only requires a new way of thinking , but it also requires companies to revamp the customer billing experience and address the rising
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