New Business Model, Or Smoke And Mirrors?
from the gee,-that-sounds-familiar dept
Jonathan Schwartz of Sun is out giving his talk again about how subscription fees are the way of the future for buying anything. One of his favorite examples (he’s used it for quite some time) is that people will buy cars the way they buy mobile phones, where the device/car itself is free or close to fee, but there’s a regular subscription fee that’s locked in (he also likes to talk about how people will download “horn-tones” for their car, but that’s a different story). He goes on to point out that for a car, this fee would be $220 — noting that the carmakers have already thought about this. Beyond asking the obvious question (um which car are we talking about here — because I imagine that a BMW is going to cost me more per month than a Hyundai), isn’t this already how many people buy cars? It’s called a loan or a lease. They buy the car with a little bit of money down, but pay regularly to cover the rest of the cost of the car. In fact, I’m sure, for some people and some cars, the amount is somewhere around $220. So, this isn’t particularly amazing. It’s not even new. It’s just taking an existing business model and changing what you call everything. Who knew it was so easy to be considered a visionary?