You bought it, but do you own it? The new subscription model

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According to a recent study, 1 in 4 Americans pay in excess of $1,200 per year for subscriptions; an analysis by CNet shows $205 of that is for forgotten or unused memberships. You paid for it, but you might not be able to use it without paying again and live with the burgeoning subscription lifestyle. Over the past decade, the concept of ownership has shifted dramatically, and we all pay for it, in one way or another, whether we actually use the items we’re subscribed to or not.

Pay once, use forever, or pay again? Subscriptions are rewriting what it means to own. Photo credit: Depositphotos.

Software moved first, think photo editing for one, then entertainment via movie rental in the form of mailed DVDs. Now, even physical goods such as cars, refrigerators, smart home devices and baby monitors are being sold as hardware only. Meanwhile, key functions are locked behind recurring paywall fees.

The result of this subscription lifestyle? Consumers pay upfront for a product, but are charged for ongoing access to basic features that depend on another subscription.

That subscription life

The subscription life trend is increasingly visible while shopping for new appliances, vehicles and televisions. Many offer basic services, while fancy extras that may entice buyers are hidden behind a paywall.

Recently, new vehicles have been showing up with features like seat heating or the ability to access the radios behind membership fees. Even autostart systems are no longer free to use on vehicles outfitted with factory system programs.

Smart home devices sometimes require costly cloud subscriptions just to maintain basic control of the unit while using it. Kitchen appliances even offer premium modes behind subscriptions, locking users out of basic functions we all want and need.

Remote access to your purchases may also be throttled when you don’t pay the premiums companies demand. The new subscription models now affect everyday products once assumed to be fully owned by the purchaser.

The right to repair

This paid access shift has fueled the Right to Repair movement, which argues that consumers should have access to manuals, parts and tools necessary to maintain and repair devices they own. Some states now have laws requiring manufacturers to provide these resources, though loopholes leave many users unprotected.

Manufacturers defend the restrictions and lack of consumer ability to repair their products, citing safety and security, and almost more importantly, their intellectual property concerns. The movement highlights a growing tension: paying for a product no longer guarantees meaningful ownership or the ability to keep it functional.

The financial burden

The financial burden is significant to many families. Households that already juggle streaming, cloud storage and device insurance are now expected to add more subscriptions to just use products they thought they’d already bought.

Subscriptions tied to hardware can increase costs, even when fees are small. For some family budgets, it can be too much. Devices once purchased outright now require recurring payments to stay functional, contributing to what experts call subscription fatigue. Paying multiple times for the same functionality has left consumers frustrated, questioning the real value of ownership, and fed up with big corporations.

Not everyone dislikes the subscription system

Companies see clear advantages to charging customers repeatedly. This kind of recurring revenue means you create the item once and sell it again and again with minimal input. Why reinvent the wheel when it is still turning just fine?

Another plus for manufacturers is that all connected devices generate data for analysis to better market to users who are already paying customers. They’re able to gather much more information on their customers than consumers are even aware of, and they use it for marketing and development.

Choose less

To protect themselves, buyers can choose non-cloud devices, read fine print, seek products with local control or switch to open-source alternatives. Interested users can learn to repair the items they already own and support repair-friendly manufacturers, or better yet, call for new manufacturers to create products they buy once and use as needed and repair as desired.

The fatigue shows

Ownership is changing, from software to streaming and now everyday devices like cars, smart appliances and baby monitors. Paying for a product no longer guarantees full access. The financial and practical impact is real for families already juggling rising food costs, daycare increases and the day-to-day struggle to stay afloat.

How can these companies justify adding just one more small bill to remind people when to change their car oil without being totally overwhelmed? Then again, how can they not?

Laura Sampson is the writer behind Little Frugal Homestead. She and her husband, Jack, are two Gen-Xers living in a 90-year-old farmhouse in Alaska. They keep chickens and honeybees, and grow a garden and small orchard; their dream is to live well within their means on their little piece of land.

The post You bought it, but do you own it? The new subscription model appeared first on Food Drink Life.

 

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