- DePlan allows users to monetize unused subscription hours.
- Users can buy and sell app hours via DePlan’s platform.
- Its success will depend on both users and app developers.
For most consumers, subscriptions have become a mandatory part of everyday life. From streaming platforms to cloud storage and a wide range of apps, most users have at least one or two subscriptions. However, while benefiting businesses, the subscription model often frustrates users, many of whom believe they are paying for much more than they use.
DePlan, a platform built on the Solana blockchain, aims to address this issue, by letting users sell their unused subscription hours. However, for the model to work, DePlan has to convince both users and app developers to get on board.
Subscriptions Model Doesn’t Work For Most Apps
Subscriptions give users access to products and services in exchange for a fee, typically billed monthly or annually. The model became ubiquitous for digital services, including streaming, cloud services, and all types of apps, from language learning to fitness, becoming a $2.6 trillion industry.
The model is favored by businesses, benefiting from predictable income and the potential for long-term customer retention. However, it also sometimes leads to inefficiencies for customers, many of whom end up paying for much than they actually use.
This can also hurt businesses, as customers are reluctant to become paying customers. At the same time, unused apps see high levels of churn, meaning that customers end their subscriptions. A study highlighted by DePlan shows that for the top 250 apps, only 3% of users are paying subscribers. Out of those, 80% cancel their subscriptions after a few months.
Can DePlan Fix Digital Subscriptions?
DePlan aims to tackle this issue by letting users sell unused subscription hours. If any paying subscriber uses the app less than the average for the app, they can sell their unused hours as tokens on the decentralized marketplace. This also enables others to use the app without becoming paying customers.
However, to change how subscriptions work, they will need app developers on board. To understand how DePlan will approach developers, DailyCoin spoke to Serj Korj, the company’s founder. He explained that the pitch to developers is simple. DePlan helps reduce paying customer churn while providing an additional revenue stream.
“Apps have a huge problem with churn of customers,” Korj explains. “We help them retain existing subscribers by rewarding them with this unusual cash-back,” he stated, adding that developers will earn from both the original subscription fee and the pay-as-you-go model.
Korj also highlighted DePlan’s decentralized nature, as its marketplace runs on the Solana blockchain. This enables app developers to join the platform without directly partnering with DePlan, and showcases the practical applications of blockchain technology.
On the Flipside
- Few of the most successful subscription businesses have lower churn rates. Netflix, for example, stands out with a churn rate of just 2%.
- Netflix has recently been cracking down on account sharing, imposing higher prices to boost its profitability.
Why This Matters
DePlan’s model highlights the practical uses of blockchain technology, enabling the creation of decentralized platforms that benefit both users and businesses.
Read more about the Solana network:
Solana Network: Is Solana Truly Decentralized?
Read more about a new report on crypto money laundering:
How Criminals Are Using Crypto to Launder Money: Report
