The Subscription Economy in Educational Platforms: Business Model Optimization Based on User Lifetime Value

Abstract

Online education has shifted from user acquisition to retention-focused sustainability, driving the adoption of subscription-based business models. Existing studies on the subscription economy emphasize pricing and churn management but overlook how pedagogical engagement and learning satisfaction shape long-term profitability. This study integrates Customer Lifetime Value (LTV) theory, the Subscription Economy Model (SEM), and the Educational Service Value Chain (ESVC) to construct an engagement-driven analytical framework. Using a comparative case study of Coursera Plus, NetEase Youdao Premium Courses, and Duolingo Super, it analyzes the interaction among engagement, pedagogy, and pricing. Findings reveal that user engagement and adaptive feedback mechanisms significantly enhance renewal probability, while perceived fairness in pricing reinforces long-term loyalty. The study identifies LTV as a multidimensional construct encompassing financial, behavioral, and cognitive value. By linking educational effectiveness with business viability, the research provides actionable strategies for optimizing subscription models, emphasizing engagement analytics, adaptive pricing, and pedagogical quality, to achieve sustainable growth in the digital education economy.