Subs vs. Membership: Choosing the right model for long-term value

For decades, many media brands built strong subscription models that delivered recurring, predictable income. But as ideas around the free web gained traction, many took their eye off the ball, betting on ad-driven models with free content as the future. 

This shift put them in direct competition with tech giants like Google, Amazon, and social media platforms—companies operating at a scale media brands simply couldn’t match.

The rise of streaming services such as Spotify and Netflix showed that people will pay for digital content. Over the past five-10 years or so, we saw publishers putting renewed focus on reader revenue models, driven by necessity, greater access to consumer data, and advancements in digital delivery mechanisms.

Media companies learned hard lessons—eroding products (e.g., cutting investment in quality journalism) while pumping up page impressions by any means lead to a race to the bottom.

 Sustainable, recurring revenue comes from creating valuable products and deepening audience relationships—whether transactional or emotional—rather than firehose publishing and chasing impressions.

As other industries explore subscription economy revenue models, the lessons from media’s subscription and membership resurgence offer helpful insights.

Subscriptions v Membership
Despite both subscriptions and memberships being well-established, a recent discussion with industry operators reminded me how “blurry” the understanding of their distinct differences remain.

While “subscription” and “membership” are often used interchangeably or as we see hybrid models emerge, understanding their differences helps when selecting the right model for a business. 

Choosing incorrectly could mean lower engagement, high churn, or a failure to capture customer loyalty in a meaningful way. It can also be a costly mistake.

Let’s take a quick look at those distinctions.

• Subscriptions are transactional. Customers pay for ongoing access to a product or service. The focus is typically on the continued delivery of value through content, product replenishment, or convenience.
• Memberships are relational. They focus on exclusivity, experiences, and community, making customers feel like they belong to something beyond just a service or product.

Each model has classical features, such as:

A way to think of this in practice is, using media as an example:

• Subscription model: A general news media brand being updated with a steady stream of 24/7, habit-forming content.
• Membership model: A special interest media brand with a slower publishing cycle, but deep relationships built on the needs, interests and passions of its audience.

The Subscription Model: Utility and Habit Formation
Subscriptions work best when they offer continuous value that keeps customers engaged. 

For media brands, this often means:

• Maintaining a steady stream of new, quality content  to keep subscribers invested.
• Offering tiered pricing for different levels of access–for example digital-only, print-only or print+digital bundles.
• Focusing on retention strategies to minimise churn and increase retention.
• Introducing elements such as personalisation and dynamic pricing.

In the retail world, brands can apply similar principles: 

• Consumable product subscriptions that build on habit-based purchasing, for example: Dollar Shave Club and Hello Fresh.
• Curated boxes that include variety and surprise, ensuring ongoing customer excitement, for example Birchbox and Barkbox.

Bear in mind here, subscription fatigue is a challenge. Consumers cancel when they stop seeing value, their financial situation changes, or they become overwhelmed by too many subscriptions. This makes customer retention strategies crucial for long-term success (read our article on subscription cancellations and retention strategies here).

The Membership Model: Community and Loyalty
Successful memberships create a deep sense of belonging. In media, these models:

• Offer exclusive perks, networking opportunities, or status-driven privileges.
• Foster community engagement through content, live events, and other touchpoints.
• Strengthen brand affinity, making retention less dependent on frequent usage. 

For retailers, loyalty programmes function similarly but often lack the emotional depth of true memberships (this article by global subscription economy expert Robbie Kellman Baxter has more). 

Advanced models, like Lego Insiders, The North Face XPLR Pass, and REI Co-op Membership, successfully tap into shared passions and lifestyles, giving members a reason to remain engaged beyond transactional benefits.

A relatively recent loyalty scheme I came across is MyAD, launched by the UK’s biggest fishing retailer, Angling Direct. NED of three years, Nicki Murphy told me they “launched MyAD almost two years ago and already have upwards of 400,000 members.” 

The layering of touch points is an important part of the success. “As well as significant discounts members receive rich content, and we add relevant benefits on angling services outside of what we ourselves sell, to further enhance members fishing experience.” 

The Hybrid Approach: Best of Both Worlds?
We operate in a dynamic world, so nothing stops brands from developing unique approaches, if that’s what will work for your consumers. A media/retail example is Amazon Prime, which combines transactional and membership elements.

Choosing Your Model: Strategic Considerations
The best model depends on your brand, your audience, and your long-term objectives.

Katie Vanneck-Smith has years’ of experience in the subscription economy, first with Dow Jones (publisher of, among others, The Wall Street Journal), more recently as one of the co-founders of Tortoise Media (a slow journalism startup) and now as CEO of Hearst UK (a lifestyle publisher).

She recently shared insights with Media Voices on their Publisher Podcast (the full episode is here) about choosing the right model:

• The Wall Street Journal is a classic subscription business. Its strength lies in indispensable, high-value information. The more essential the content, the stronger the case for a subscription.
• Tortoise presented different challenges. It couldn’t compete on breaking news, so focused on slow journalism (less content, more depth)—giving its members access and deep engagement through events and discussions. This model is more about participation than pure access.
• Hearst UK, in turn, has various lifestyle media brands like Elle, Good Housekeeping, and Men’s Health. Here, the opportunity is hybrid: subscriptions for digital and print access, and membership elements—exclusive clubs, events, and deeper community engagement.”

Steve Price, Atlas membership partner, emphasises the customer-first focus. “The key to success is understanding your customers. Before launching, talk to your customers. Find out what membership means to them. If done well, membership isn’t just an extension of a subscription—it’s an entirely different relationship.” 

The most successful models—whether subscription, membership, or hybrid—are built on deep customer insight, ongoing value delivery, and a long-term relationship focus.  

They are not without financial and reputational risk. “Once you embark on the journey, you must “be sure you can deliver it consistently well.” 

However, according to Steve  the upside is that successful programmes will “move you from a transactional to a deeper relationship with your customers. Get it right, and building long-term customer lifetime value becomes a whole lot easier”.

In Conclusion: Making the Right Choice
Of course, just because these models exist, there might be circumstances where none of them are best for your business, for example:

• Infrequent or one-time purchases/Customers prefer flexibility: If customers only buy your product occasionally or do not want to be locked in, a recurring model won’t align with their needs. 
• Subscription fatigue in your industry: If consumers are overwhelmed by too many subscriptions, adding another one may lead to low adoption and high churn. Too often brands simply add to the “noise” without offering real value.
• Loyalty can be built without paid-for benefits: If strong customer service, high-quality products, or free perks drive retention, a membership may be unnecessary.
• High operational costs vs. limited ROI:  If the cost of running a subscription/membership (content, tech, community management) outweighs potential revenue, steering clear is the better option.

Ultimately, when considering these models,  it’s about aligning your products, services and goals with your customers’ needs, expectations and engagement preferences. Ask questions such as:.

• Customer Expectations: What do your customers expect from an ongoing relationship? Do they value convenience, habit-based transactions, or community and engagement?
• Scalability: Can your business sustain the demands of a membership experience, or is a subscription model the better option to scale?
• Costs: Have you fully considered the costs of running a programme? For example, subscriptions need a constant flow of fresh value to prevent churn, while memberships require ongoing investment in content/product, community, and experiences. 
• Revenue Potential: What is most workable in your environment? Does your product or service offer recurring subscription revenue potential, premium membership up-sells or a combination of the two?

In conclusion, retailers, like media brands, must make deliberate choices about customer relationships. Do you want to build transactional convenience or long-term brand affinity? Are you optimising for repeat purchases or deep engagement? 

I hope the above helps with a roadmap. The next step is yours: Which model, if any, will be best for your business?

Cobus Heyl

Heyl is a Content Partner at Atlas and Founder of That Coalition, a fractional event services and content provider.

Heyl has worked with third-party clients such as Chartbeat, Lineup Systems, and Tubular Labs in Europe and the US, Prospect in the UK, and industry bodies such as PRCA (Communications and Public Affairs) in the UK, MVFP (German Publishers Association) and the Association of Indian Media (AIM).

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