- DePlan allows users to monetize their unused subscription time.
- Users can buy and sell app time through the DePlan platform.
- Success depends on both users and app developers.
For most consumers, subscriptions have become an essential part of their everyday lives. From streaming platforms to cloud storage to a variety of apps, most users have at least one or two subscriptions. But while the subscription model is beneficial for businesses, it often leaves many users feeling frustrated, as they feel like they are paying far more than they use.
DePlan, a platform built on the Solana blockchain, seeks to solve this problem by allowing users to sell unused subscription time. However, for this model to work, DePlan needs to convince both users and app developers.
The subscription model doesn’t work for most apps.
Subscriptions give users access to products and services for a fee, usually billed monthly or annually. This model has become widespread across digital services, including streaming, cloud services, and all types of apps, from language learning to fitness, and has become a $2.6 trillion industry.
This model is favored by businesses because of its predictable revenue and potential for long-term customer retention. However, it sometimes creates inefficiencies for customers, with many customers paying more than they actually use.
This can also be detrimental to businesses, as customers are reluctant to become paying customers. At the same time, unused apps have high churn rates, meaning customers are canceling their subscriptions. According to a study highlighted by DePlan, only 3% of users are paying subscribers for the top 250 apps. Of those, 80% cancel their subscriptions after a few months.
Can DePlan Fix Digital Subscriptions?
DePlan aims to solve this problem by allowing users to sell their unused subscription time. If a paying subscriber uses the app less than the average user, they can sell their unused time for tokens on a decentralized marketplace. This allows others to use the app without becoming a paying customer.
But changing the subscription model requires app developers. To find out how DePlan is approaching developers, DailyCoin spoke with the company’s founder, Serj Korj. He explained that the pitch to developers is simple: DePlan reduces churn for paying customers while providing an additional revenue stream.
“Apps have a huge problem with churn,” Korj explains. “We help them retain their existing subscribers by rewarding them with this unique cashback.” He adds that developers will make money from the original subscription and pay-as-you-go models.
Korj also highlighted the decentralized nature of DePlan, as its marketplace runs on the Solana blockchain. This allows app developers to join the platform without having to work directly with DePlan, demonstrating a practical application of blockchain technology.
On the other side
- Few of the most successful subscription businesses have low churn rates. Netflix, for example, stands out for its low churn rate. Only 2%.
- Netflix recently Crack down We charge higher prices to increase profitability through account sharing.
Why this matters
DePlan’s model highlights the practical use of blockchain technology to create decentralized platforms that benefit both users and businesses.
Learn more about the Solana Network:
Solana Network: Is Solana Really Decentralized?
Learn more about our new report on cryptocurrency money laundering:
How Criminals Use Cryptocurrency to Launder Money: Report