ABSTRACT
Many digital business models originated in the physical world. In their book, The Business Model Navigator, authors Oliver Gassmann, Karolin Frankenberger, and Michaela Choudury have identified some 60 business models. These include models in both physical and digital worlds, and some are slightly altered versions of each other. This chapter discusses some of the more prominent digital business models in use today by both traditional and digital businesses. Many businesses, both physical and digital, sell their products and services directly to consumers—through their website or company retail store. Direct selling also includes selling approaches like licensing, renting instead of buying, digital add-on, and the like. Companies in both physical and digital worlds have been selling their products and services for a long time on a monthly or annual subscription. In addition to The New York Times, Netflix, Spotify, and HelloFresh, one can subscribe to an astonishing array of products and services.
