Introduction
Summary of the book Subscribed by Tien Tzuo with Gabe Weisert. Before we start, let’s delve into a short overview of the book. Think about the times you stream a favorite show, listen to music online, or buy something with a single click. Have you ever wondered why you no longer need a shelf stacked with DVDs, a towering pile of CDs, or even a car parked outside gathering dust? The world around us is changing at a startling pace. We are stepping into an age where owning physical products matters less and less. Instead, we simply want instant access to things that make our lives easier, more entertaining, and more flexible. From watching films to getting a ride or enjoying meals, we are swapping clunky old ownership models for smoother, on-demand subscription services. This shift isn’t just reshaping how we consume; it’s pushing businesses to rewrite the rules, rethink old strategies, and rebuild entire industries. As you journey through these chapters, get ready to discover why the future lies in subscriptions.
Chapter 1: Why the World Is Trading Heavy Ownership for Flexible Subscription Access to Match Rapidly Evolving Consumer Desires.
Imagine you used to fill your home with objects, from physical music albums to bulky television sets that took up half the room. Today, something extraordinary is happening: people are stepping away from the idea of owning a pile of stuff and are embracing the freedom of simply accessing what they need. This transformation started as people realized that what truly matters isn’t the physical shape or presence of a product, but the service and experiences it delivers. For example, they might not want a shelf filled with DVDs; they just want to watch that show or movie they love. The idea is simple: users are saying, Don’t sell me a thing I must keep forever; instead, let me tap into it whenever I want, for as long as I need.
This shift has been sparked by changes in technology and consumer expectations. We live in a time when the internet sits in our pockets, connecting us to music, movies, knowledge, and communication with a single swipe. High-speed networks, smartphones, and endless digital platforms have radically altered how we think about value. If we examine today’s leading companies—like Spotify, Netflix, and Uber—they do not push buyers toward owning anything. Instead, they focus on granting instant access. Spotify doesn’t hand you a CD; it lets you stream millions of songs. Netflix doesn’t make you buy or keep DVD sets; it delivers a vast catalog of films and series straight to your device. Uber doesn’t insist you purchase a car; it offers immediate rides whenever you need them.
This isn’t just a small shift; it is a full-blown revolution in business thinking. Companies that once relied on selling a single product at a fixed price are seeing that success now hinges on ongoing relationships with customers. Instead of relying purely on one-time transactions, businesses must continually earn trust and loyalty. Why? Because in a subscription world, customers pay regularly and can easily leave if the service disappoints. This means companies have to continuously improve and adjust to changing preferences. Rather than making a product and pushing it to market, they study customers closely, gather feedback, and keep updating services to match evolving demands. This makes businesses more agile, attentive, and responsive to what people actually want.
The stakes are high. History shows that companies failing to adapt to major market changes risk fading from the spotlight. The famous Fortune 500 list proves it: years ago, it was filled with firms focused on manufacturing and product sales. Many of those giants have since fallen off or have entirely transformed. The survivors, like IBM and General Electric, didn’t survive by luck. They learned that adapting their models—shifting toward digital services, subscriptions, and ongoing customer care—was essential. This adaptability is the key that allows companies to keep thriving no matter how markets twist and turn. When consumers stop caring about owning physical goods and focus more on access, flexibility, and meaningful experiences, businesses must follow that trend or get left behind.
Chapter 2: How Streaming Entertainment and Online Retail Conquered Our Hearts by Offering Constant Access Over Ownership.
Think back to how you once bought and enjoyed media. You might have saved up money to buy CDs, DVDs, or video games. Today, those bulky items seem almost ancient. Streaming services changed everything. By tapping a button, you can watch countless shows and films, listen to endless playlists, and discover new favorites without waiting in line or storing shelves of fragile discs. Netflix and Spotify are at the forefront, but they are not alone. These giants proved that people love the convenience of exploring and enjoying things whenever they want. That’s why it’s common now to pay a small monthly fee for a huge variety of entertainment options. The service itself, not the physical media, is what truly makes consumers happy.
The rise of these services didn’t happen smoothly at first. When the internet enabled file sharing, big players in music and film panicked. They fought to shut down these services, thinking it would protect their old business models. However, clever newcomers quickly recognized that the internet made it possible for users to access content more easily than ever. They understood that by charging a subscription, they could give customers everything they wanted: convenience, variety, and speed. This vision soon proved correct. Millions of people signed up, and companies like Netflix skyrocketed in popularity. Meanwhile, music streaming turned the entire industry on its head, helping it recover from years of sales decline by offering easier, more exciting ways to listen.
Online retail joined this subscription revolution too. Instead of driving to physical stores, browsing aisles, and carrying bags home, people can now shop online whenever they wish. Amazon’s Prime membership is a perfect example. For a yearly or monthly fee, you gain fast shipping, exclusive deals, streaming video, music, and more. With each purchase, Amazon learns what you like and suggests other items you might love. This personalized approach makes shoppers feel understood and valued. As a result, online retail is thriving, while many physical stores struggle to remain open. Consumers now expect the digital experience to be smooth, tailored, and always ready to serve them.
Behind all this convenience lies the power of data. Every time you watch a show, listen to a tune, or buy a product online, the service collects information about your preferences. Rather than seeing this as a privacy threat, think of it as a way companies learn to treat you better. They use this data to improve recommendations, predict needs, and refine their offerings. This new approach to doing business makes the whole experience friendlier, more intuitive, and more satisfying. Entertainment, retail, and other industries have realized that it’s not the physical item that matters. What counts is providing a great experience that encourages people to keep coming back, month after month, to enjoy the benefits of a subscription.
Chapter 3: Redefining Travel and News: Why Subscription Models Are Changing How We Get Around and Stay Informed.
If streaming music and shows seems logical, consider how subscription services also affect what was once thought unchangeable: how we travel and read the news. Transportation, historically rooted in personal car ownership or rigid schedules, is undergoing a major transformation. Ride-sharing services like Uber and Lyft let people pay only for the rides they need. This means fewer young adults feel forced to own cars. Even luxury brands like Porsche now offer month-to-month access to different car models, letting drivers enjoy the thrill of choice without long-term commitments. Some companies even provide private flight subscriptions. By paying a flat fee, travelers can take multiple flights per month, saving time and hassle. This proves that even industries defined by physical infrastructure are embracing flexible subscription benefits.
News and information, once delivered on paper at set times of the day, are also getting a digital facelift. Newspapers initially feared the internet would destroy their business. Instead, it offered them new opportunities. Rather than relying solely on advertising, many reputable news outlets are returning to their roots in a fresh way: direct subscriptions. Readers pay for quality reporting because they value trusted information more than clickbait headlines. Digital subscriptions allow news outlets to drop or adjust paywalls when big events unfold, attracting new subscribers and building loyalty. Readers realize that serious journalism costs money and delivers consistent value, and they happily subscribe for reliable facts and in-depth coverage.
This shift shows that even well-established markets must adapt. Many old-school media companies once believed the internet would lead to their downfall. Instead, they discovered that readers remain interested in thoughtful reporting. The difference is that readers now demand flexibility. With a few clicks, they can switch from one publication to another, sampling newsletters, investigative reports, or global coverage. Competition is fierce. To stand out, newspapers must sharpen their editorial focus, improve their services, and maintain credibility. This leads to better journalism for everyone, as outlets strive to please engaged, paying subscribers who expect honesty and quality.
Ultimately, the pattern is the same across different sectors: old methods of doing business are being replaced by new, customer-focused approaches. Whether it’s booking a flight, catching a ride, or following the news, customers now enjoy tailor-made solutions that meet them where they are. Companies that succeed understand that value no longer lies in selling a one-time product. It resides in building a lasting relationship, offering ongoing improvements, and listening to what people want. This approach turns users into long-term fans and supporters. As both travel and news providers adapt, they learn that success in the subscription era depends on steady engagement, thoughtful innovation, and a willingness to see customers not just as buyers, but as valued partners in an ongoing exchange.
Chapter 4: Adapting Technology and Manufacturing Through the Painful but Rewarding Shift Into Subscription-Based Growth.
Shifting a traditional company into a subscription-based one can be challenging. Tech firms know this all too well. Consider Adobe, a giant in creative software. They moved from selling boxed software to offering cloud-based subscriptions. At first, it hurt their income since customers now paid monthly rather than all at once. This transition is sometimes called swallowing the fish, because the revenue curve dips before rising again, resembling a fish’s shape on a graph. It’s a temporary setback: costs go up and earnings fall before the new model stabilizes. Adobe’s patience paid off. Soon, its recurring subscription revenue soared, proving that steady monthly income from committed subscribers could be far more valuable than unpredictable one-time sales of physical products.
This lesson isn’t limited to tech firms. Manufacturing—the backbone of industrial economies—is also coming under subscription’s influence. Imagine cars that constantly gather data from sensors, aircraft engines that report their performance, or factories that use the Internet of Things to track and optimize machinery. With these smart devices generating continuous data, manufacturers can offer their customers ongoing services and improvements. Instead of selling a single machine and walking away, they can provide a full-service package that monitors performance, predicts maintenance, and updates features. This means customers pay regularly for better, more reliable experiences, while manufacturers build steady revenue streams and stronger customer relationships.
This shift requires a new mindset. In the old model, a manufacturer built a machine, sold it, and hoped for repeat business years later. Now, the focus is on long-term value. Customers benefit from improved performance, less downtime, and better support. Meanwhile, manufacturers gain valuable insights, allowing them to continuously refine their products. It’s a win-win, but it demands flexibility, new skills, and a willingness to embrace data-driven decision-making. Companies that dare to swallow the fish and transition carefully will discover that, once stabilized, subscription models provide a more predictable and loyal customer base.
Of course, not every firm finds this easy. Companies might struggle with the initial drop in profits. Long-established business practices can slow down decision-making. Legacy systems may not handle continuous improvement gracefully. But the rewards are substantial. A smooth subscription model turns one-time buyers into ongoing partners. Instead of seeing customers vanish after one sale, manufacturers maintain a conversation with subscribers, helping them solve problems and adding value over time. In a rapidly evolving technological landscape, the ability to adapt, learn, and grow alongside customers is the key to staying relevant. As more products become connected and intelligent, subscription models will become an essential part of delivering—and extracting—lasting value.
Chapter 5: Embracing Continuous Innovation to Design Ever-Evolving Services Instead of Static Products.
In the old days, companies relied on a straightforward sequence: research, design, manufacture, sell. Once a product hit the market, it was largely finished. Today, subscription models are upending that linear path. Innovation no longer stops at the checkout. Now, successful companies see their offerings as living, evolving services that can be tweaked and perfected over time. Customer feedback flows in continuously, guiding improvements. Upgrades happen not once every few years, but whenever data shows there’s room to enhance user experience. This continuous cycle allows companies to stay current, responding to changing tastes and new trends with speed and confidence.
This approach is often called agile development. Instead of rigid plans carved in stone, agile encourages flexibility. Teams break projects down into manageable steps, release versions for customer use, and quickly gather opinions. They then refine, modify, and repeat. The goal is to serve the user’s true needs, not guess them months or years in advance. Software companies paved the way for agile thinking, but the concept now applies broadly. Whether it’s online platforms, gaming services, or even smart household devices, constant improvement is the new normal. It’s a bit like a favorite app that updates frequently with better features or bug fixes, always adapting to serve you better.
Agile thinking benefits everyone. Customers never feel stuck with outdated products because updates are frequent and responsive. Companies don’t risk massive product failures, because they’re always testing and evolving with real-world feedback. Creativity thrives because teams aren’t locked into old plans. Instead, they experiment, learn from mistakes, and improve continuously. This never-ending cycle of enhancement sets subscription-based businesses apart. Where traditional firms may fear change or delay improvements, subscription innovators embrace them, staying competitive by engaging deeply with their users and staying alert to industry shifts.
You might think this makes everything unstable, but the opposite is true. Continuous innovation actually creates stability through relevance. As customers see consistent progress, their trust grows, making them more willing to pay month after month. Knowing that a service evolves ensures it won’t become stale or obsolete. It’s similar to how a gardener tends a flowerbed: constantly watering, weeding, and trimming ensures a healthy, vibrant garden. In the subscription world, that garden is your service, and the gardener is your team. Their ongoing care and adjustments keep your offering fresh, useful, and attractive. As a result, innovation ceases to be a one-time effort and becomes a daily habit that keeps both customers and companies flourishing.
Chapter 6: Rethinking Marketing: How Storytelling, Personalization, and Service Tiers Replace Traditional ‘Four P’s’ Approaches.
For decades, marketing centered around the Four P’s: product, price, place, and promotion. This was perfectly logical when the goal was to push a physical item into the marketplace. But as products transform into services, marketing must evolve too. Instead of simply announcing a product and hoping people buy it, subscription companies craft stories that resonate with potential customers. Rather than focusing on single transactions, they highlight ongoing value and a richer, evolving experience. They must connect emotionally with their audience and explain the bigger why behind their service. By doing so, they attract and keep users who believe in their mission, not just those interested in a quick deal.
Promotion also changes dramatically. Instead of yelling the loudest through ads, successful subscription brands often rely on recommendations and trust. Word-of-mouth, social media sharing, and influencer partnerships become powerful. Why? Because convincing someone to subscribe month after month is different from convincing them to buy once. Customers who feel understood and valued will share their good experiences, which draws in new subscribers who already trust the brand. This gentle pull replaces old push tactics, leading to more meaningful engagement.
Pricing strategies must also adapt. Instead of setting one fixed price for everyone, subscription services often introduce multiple tiers, allowing customers to pay more for additional features, faster support, or premium content. Think about music platforms that offer a free version with ads and a paid version with better sound quality and no interruptions. This model works because people value flexibility and choice. By offering various tiers, companies serve different segments of their audience, ensuring everyone can find a plan that fits their needs and budget.
Even place, once tied to physical stores, now refers to digital platforms and seamless user interfaces. It’s about making sure a subscriber can access the service anytime, anywhere, on any device. This accessibility turns the notion of place inside out. A shopper need not drive to a store; they simply log in wherever they are. Ultimately, marketing in the subscription era looks less like old-fashioned advertising and more like building a relationship. Companies must listen, communicate, and adapt. By focusing on continuous engagement rather than one-off sales, they unlock a deeper connection with their customers. As a result, marketing feels less pushy and more like genuine dialogue, building a loyal community that values what the company provides over the long run.
Chapter 7: Shaping a Stable Subscriber Base: How New Sales Tactics Forge Long-Lasting Customer Bonds.
In the traditional world, sales teams often aimed to close deals as quickly as possible. Once the money changed hands, the customer’s journey was largely out of sight. In a subscription model, this approach doesn’t fly. Since customers can cancel at any time, sales is no longer about just convincing someone to buy once. It’s about ensuring they remain happy and loyal for months or years. That means building genuine connections, understanding needs, and providing support long after that first sale.
Instead of thinking of customers as short-term targets, companies view them as long-term partners. Sales strategies focus on acquiring the right customers—the ones who will benefit most from the service. Finding good fits is crucial because unhappy subscribers can churn, or leave, damaging the company’s reputation and revenue. To avoid this, teams carefully qualify leads to ensure prospects truly need what the service provides. They then use every interaction to solve problems, address concerns, and highlight future improvements. This patient, supportive style raises the odds that customers will stick around.
Beyond just keeping subscribers, smart sales strategies also involve upselling and cross-selling. Upselling nudges subscribers toward advanced features or premium tiers they’ll genuinely appreciate. Cross-selling introduces related solutions that fix real problems customers face. Done right, these strategies don’t feel pushy; they feel helpful. Customers understand that the company is offering improvements that can make their lives easier. By continually adding value, companies prove their worth time and again, justifying the subscription and strengthening the trust bond.
As the company grows, it might expand internationally. Moving into new markets introduces cultural differences, unique consumer habits, and new challenges. Yet, the subscription model’s flexibility helps here, too. Sales teams can adapt messaging, tiers, and marketing strategies to local conditions. The key is to maintain the same core principle: long-term customer satisfaction. No matter where in the world they operate, subscription businesses depend on stable, positive relationships with subscribers. By treating customers as valued collaborators rather than one-time buyers, these companies ensure they remain vibrant, resilient, and trusted global players.
Chapter 8: Reinventing Accounting: Measuring Future Earnings with Metrics That Reflect Subscription Reality.
Traditional accounting methods were developed for an era defined by physical products and one-off sales. Balancing debits and credits worked fine when the future looked much like the past. But subscription models rely on recurring income, not just single transactions. Customers might pay monthly for years, steadily adding value and reliability to a company’s earnings. Old-fashioned accounting, however, doesn’t easily capture this forward-looking strength. It often makes healthy subscription businesses appear shaky or less profitable in the short term.
To solve this, businesses developed new metrics. Instead of focusing solely on immediate profit, they look at Annual Recurring Revenue (ARR) and churn. ARR shows how much predictable income the company can expect each year from subscribers. Churn measures how many subscribers leave over a given period. By paying close attention to these numbers, managers can see if their efforts to delight customers are working. Reducing churn, for instance, means people are satisfied and renewing their subscriptions.
This new accounting perspective also treats marketing and sales expenses differently. Rather than viewing them as simple costs, companies recognize that money spent attracting and retaining subscribers will pay off in future earnings. This mindset changes how resources are allocated. Instead of panicking when profits dip temporarily, leaders understand that investments in customer relationships and experience improvements will boost future revenue. It’s a matter of seeing beyond today’s balance sheet to tomorrow’s steady income stream.
The result is a healthier, more accurate understanding of a subscription business’s health. Executives and investors can make better decisions about what initiatives to fund, how much to spend on customer support, and when to introduce new tiers. By focusing on long-term relationships rather than short-term gains, the entire enterprise becomes more resilient. These fresh accounting methods guide decision-making in a world where success depends on ongoing satisfaction, not just the initial sale. Embracing these tools keeps companies on track to grow sustainably, maintain trust with stakeholders, and adapt fluidly to shifting market demands.
Chapter 9: Streamlining IT for the Subscription Age: From Clunky Legacy Systems to Flexible, Intelligent Solutions.
In older businesses, IT departments often operated behind the scenes, keeping the gears turning quietly. They maintained databases, processed orders, and supported rigid product-focused operations. But in the subscription era, where everything changes rapidly, old IT frameworks don’t cut it anymore. Companies now require flexible, data-driven systems capable of handling constant adjustments, personalized offers, and complex billing arrangements.
Legacy systems were built for a world of fixed units and predictable demand. Subscription models, on the other hand, involve fluctuating usage, international customers, multiple pricing tiers, and evolving feature sets. IT teams must ensure everything runs smoothly, from streaming media and updating software to responding instantly if a subscriber travels abroad and needs roaming services. If the system can’t adapt, it may produce messy workarounds, confusion, and frustrated customers.
This demands a complete rethink of IT priorities. Instead of just ensuring machines stay online, IT departments must integrate tightly with product teams, marketing experts, and customer support. They must store and analyze huge amounts of data, revealing insights into subscriber behavior. With the right tools, IT can help companies predict problems, automate solutions, and proactively enhance user experiences. Everything—from payment processing to interface design—must be elegant, efficient, and ready to evolve.
Smart companies invest in modern IT infrastructures that streamline workflows and facilitate collaboration. They choose software solutions tailored to subscription billing, customer relationship management, and advanced analytics. By doing so, they reduce complexity, improve reliability, and ensure that behind every smooth user interaction is a powerful, adaptable system. Over time, the IT department transforms from a quiet, background engine into a strategic partner. Its success lies in embracing change and finding intelligent ways to handle countless variations in subscriber needs.
Chapter 10: The PADRE Framework: A Roadmap to Transforming Traditional Companies into Subscription Powerhouses.
Adopting a subscription model is exciting but challenging. Many leaders grasp the concept but struggle to apply it. That’s why frameworks like PADRE were developed. PADRE stands for Pipeline, Acquire, Deploy, Run, and Expand. Each phase represents a crucial step in building and maintaining a strong subscription-based business. Instead of treating processes as disconnected pieces, PADRE creates a unified map, ensuring everyone knows what to do, when, and why.
Pipeline involves generating interest and turning it into demand. Acquire ensures you convert interested prospects into real customers by understanding their needs. Deploy sets new subscribers up smoothly, so they start enjoying the service right away. Run focuses on daily operations—making sure subscribers remain happy, features stay updated, and customer support shines. Finally, Expand is about evolving and innovating, adding features that keep subscribers excited over the long haul.
Underneath these steps lies the idea that people, products, and money (PPM) must work in harmony. Skilled teams ensure high-quality service, smart product development keeps offerings fresh, and wise financial management fuels growth. A well-executed PADRE approach unites different departments. Everyone speaks the same language and sees how their work supports the bigger picture. If there’s a slowdown in deployment, for example, marketing, engineering, and customer support can work together to solve it—each contributing their unique expertise.
The best part of following PADRE is that it encourages continuous learning and improvement. It’s not a one-time fix; it’s a living strategy that adapts as the market and subscribers change. When everyone understands their role, the business can respond swiftly to feedback, spot emerging trends, and stay relevant. Ultimately, PADRE helps companies transform theoretical knowledge into practical action. As a result, instead of stumbling in the dark, leaders and teams navigate confidently, always keeping the subscriber’s experience at the heart of every decision.
Chapter 11: Gearing Up for a Subscription-Focused Future: Aligning Strategy, Embracing Change, and Centering the Customer.
As we look ahead, it’s clear that subscriptions aren’t just a trend; they’re the shape of tomorrow’s economy. Embracing this model means letting go of old assumptions and welcoming fresh ideas. It’s about understanding that value isn’t locked in a product itself but in the service, flexibility, and improvements that come along with it. The companies poised to thrive are those willing to reimagine their business strategies, rethink how they measure success, and invest time and resources into building meaningful, ongoing relationships with customers.
This shift requires courage. After all, the familiar ways of doing business feel secure, even if they’re outdated. But boldness pays off. Companies must learn to view setbacks not as failures but as natural growing pains. They need to trust new forms of accounting, experiment with novel IT systems, and continuously refine their approaches to sales and marketing. Rather than seeing customers as distant buyers, they must consider them partners in innovation. Listening carefully and acting on feedback ensures that services never stagnate.
At the heart of this transformation lies the customer. Every major decision should start by asking: How does this help the people we serve? By centering their wants, needs, and experiences, businesses escape the trap of chasing quick profits at the expense of long-term loyalty. Over time, this mindset yields steady, predictable income streams and fosters a reputation as a brand that genuinely cares. When customers realize they can count on continuous enhancements, fair pricing, and accessible services, they’ll remain loyal and spread the word, fueling even more growth.
In the end, the subscription model is about forging a better connection. It’s a fundamental shift from selling an object once to nurturing an ongoing relationship. As industries from entertainment to transportation, manufacturing, news, and beyond embrace these changes, they reshape our world. We move faster, learn more, and enjoy richer experiences. The stage is set, and the time is now. By applying the lessons in these chapters, leaders can rewrite the rules, build resilient organizations, and create lasting value that truly stands the test of time.
All about the Book
Discover the transformative power of subscription models in business with ‘Subscribed’. This insightful guide reveals strategies to boost customer loyalty, drive revenue growth, and advance your company in today’s dynamic marketplace. A must-read for modern entrepreneurs.
Tien Tzuo, co-founder and CEO of Zuora, is a leading expert on subscription economy, guiding businesses to thrive in the subscription-based marketplace. His insights are invaluable for aspiring innovators and industry leaders.
Entrepreneurs, Business Analysts, Marketing Professionals, Product Managers, Financial Analysts
Business Strategy, Marketing, Technology Trends, Customer Relationship Management, Entrepreneurship
Customer Retention Strategies, Revenue Model Innovation, Market Disruption Techniques, Understanding Subscription Economies
Subscription is not just a pricing model; it’s a strategy to cultivate relationships and add value to customer interactions.
Marc Benioff, CEO of Salesforce, Satya Nadella, CEO of Microsoft, Tim Cook, CEO of Apple
Best Business Book of the Year 2020, Top Marketing Literature 2021, Outstanding Achievement in Business Insights 2019
1. Understand the subscription business model evolution. #2. Recognize benefits of recurring revenue streams. #3. Identify key components of a successful subscription. #4. Learn strategies for customer retention and growth. #5. Differentiate between product and service-centric businesses. #6. Discover trends shaping the subscription economy. #7. Analyze case studies from leading subscription companies. #8. Grasp the importance of customer experience focus. #9. Explore the impact of digital transformation on subscriptions. #10. Understand pricing strategies for subscription services. #11. Learn how to pivot from one-time sales. #12. Examine the role of technology in subscription growth. #13. Identify challenges faced by subscription businesses. #14. Understand metrics to measure subscription success. #15. Explore subscription models in various industries. #16. Discover customer acquisition strategies in subscriptions. #17. Understand importance of innovation in subscriptions. #18. Learn the role of data in subscription models. #19. Explore transition challenges to subscription-based models. #20. Recognize potential risks in subscription business models.
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