International Journal For Multidisciplinary Research

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The Economics of Emerging Business Models: A Literature Review of Subscription, Freemium, and Platform Strategies

Author(s) Ms. Ishaana Chugh
Country India
Abstract The rapid expansion of the global digital economy, particularly within consumer-facing and enterprise-orientated digital markets across both developed economies and emerging economies such as India, has led to the widespread adoption of innovative business models that fundamentally reshape how firms create, deliver, and capture value. This literature review synthesises current academic research on three dominant digital business models: subscription, freemium, and platform strategies, to provide a comprehensive economic understanding of their mechanics, performance drivers, and strategic implications for digital firms, platform operators, and end-users operating within these economies. Drawing from interdisciplinary scholarship in economics, marketing, information systems, and behavioural science, the review highlights the role of network effects, switching costs, and near-zero marginal costs in enabling scalable digital value propositions. Subscription models are examined through the lenses of lifetime value optimisation, churn dynamics, and predictable recurring revenue; freemium models are explored in terms of conversion psychology, cross-subsidisation, and low-cost digital distribution; and platform business models are analysed with emphasis on two-sided markets, network externalities, monetisation strategies, and competitive dynamics that often result in winner-takes-most outcomes. The primary objective of this review is to inform strategic decision-making by clarifying how these business models influence consumer behaviour, firm-level performance, and market concentration among digital firms serving large and diverse user populations. The review also identifies critical gaps in the literature, including insufficient cross-model comparative research and limited transparency in platform-level data, which constrain empirical validation. Overall, this paper contributes to a structured understanding of emerging digital business models and offers insights relevant to business leaders, policymakers, and researchers engaged with rapidly evolving digital economies.
Keywords Digital business models; Subscription economy; Freemium strategy; Platform economics; Network effects; Monetization models; Digital ecosystems
Published In Volume 8, Issue 1, January-February 2026
Published On 2026-01-07
DOI https://doi.org/10.36948/ijfmr.2026.v08i01.65635
Short DOI https://doi.org/
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