Core Insights - Deere & Company, known as John Deere, has faced criticism for its transition to a Software-as-a-Service (SaaS) model, which indicates a shift towards a restricted-repair model for its agricultural, construction, and forestry machinery [2] - This transition forces customers, such as farmers, to utilize integrated digital technology in their equipment, implying that they hold a license to operate the software rather than owning the machines outright [3] - The subscription economy is on the rise, with companies generating recurring revenue from consumers who pay for ongoing services instead of purchasing products outright [4] Subscription Economy Overview - The subscription economy is driven by digital transformation, focusing on captive audiences willing to pay for personalization and convenience, leading to predictable revenues for companies [5] - This model has historical roots, with various industries, including gaming and telehealth, adopting similar practices, but modern adoption is primarily driven by digital services [6] - The subscription economy is projected to grow at a compound annual growth rate (CAGR) of 13.3% through 2033, indicating strong future potential [7] Company Examples - Netflix remains a dominant player in the streaming video market, with a potential 41% upside following its acquisition of Warner Bros. Discovery, despite recent losses [7] - Adobe's subscription revenue grew by 12% last year, although its stock is down 61% from its 2021 peak, showcasing the resilience of subscription models in driving growth [7]