How does subscription differ from usage-based pricing?

Subscription and usage-based pricing are different monetization models:

• Subscription — the customer pays a fixed amount regularly (monthly, annually) for access to a product or service, regardless of usage volume. Example: a Netflix subscription.

• Usage-based pricing — the customer pays for the actual use of the service or product. The price depends on the amount of resources consumed, time, or volume. Example: paying for the number of SMS sent or traffic used.

The main difference is that subscription provides predictable income and convenience for the user, while usage-based pricing is more flexible and fair for customers with different levels of consumption.