Subscription lifecycle

Understand the subscription lifecycle.

Subscriptions allow customers to make recurring payments to access a product like a video game or streaming service.

The following image shows the lifecycle of a subscription from beginning to end when a customer purchases a new subscription to a product. You receive a notification when the customer creates a new subscription. After the trial period expires, the system bills the customer, and you receive a trial to active conversion notification. As the customer continues to use the product, you receive renewal notifications at the start of every new subscription period. Finally, you receive a cancellation notice when the customer no longer needs the product and their subscription lapses.

The following image shows the lifecycle from the beginning of a free trial subscription to the end.

The following table defines the terms used in the subscription lifecycle.

Term	Description
Purchase Date	The date the subscription was purchased
Activation Date	The date the paid subscription was activated. If the subscription was not activated, the date appears as 01/01/9000 00:00:00.
Free Trial Activation Date	The date the free trial subscription was activated. If the subscription was not activated, the date appears as 01/01/9000 00:00:00.
Free Trial Conversion Notification Date	The date when you send the customer a free trial conversion notification for their subscription.
Free Trial Conversion Confirmation Notification Date	The date when you send the customer notification that their free trial converted to a paid subscription. Note: Auto conversion to paid subscription only occurs for an auto subscription product. Manual subscriptions require the customer to manually renew the subscription.
Purchased Duration	The selected recurrence from the product setup GUI. The amount (in days) of service purchased excluding any extensions or trials.
Purchased Duration Date	The date when the subscription ends based on the amount of service purchased. Note: This is not the expiration date.
Renewal Notification Date	The date when you send the customer a renewal notification for their subscription.
Conversion Notification date	The date when you send a conversion notification for their free trial, informing the customer that their free trial will become a paid subscription.
Extension Period	Additional length of service given beyond the purchased duration.
Bill	The date you bill the customer. You could send a bill to remind the customer to renew their subscription on milestone dates, such as the Renewal Date, Expiration Date, and the Grace Date.
Renewal Date	The date when the customer should renew their subscription.
Expiration Date	The date when the subscription completes. This includes the amount of service purchased plus any extensions.
Total Duration	Also known as the Subscription Period. The length of time that the subscription provides services. This includes the purchased amount of service plus any extensions.
Grace Period	The length of time a subscription continues to provide the service after the expiration date.
Grace Date	The date when the grace period ends. No service is provided after this date.
Cancellation Date	The date when the subscription was cancelled. If the subscription is not cancelled, the date appears as 01/01/9999 00:00:00.

Invariants

Digital River uses these invariants to define the subscription lifecycle.

• Activation Date < Purchased Duration Date <= Expiration Date <= Grace Date

• Activation Date < Renewal Date <= Expiration Date <= Grace Date

• Activation Date < Renewal Notification Date < Renewal Date

• Renewal Notification Date must be one or more days before the Renewal date

• Free Trial Conversion Notification Date = Free Trial Conversion Confirmation Date − Notification Days

• Free Trial Conversion Date or Trial Term End Date (for example, June 20th) = Free Trial Start Date (for example, June 10th) + Free Trial Product Term (for example, ten days)

• Purchase Duration = Purchase Duration Date − Activation Date

• Purchase Duration Date = Activation Date Purchase Duration

• Extension Period = Activation Date + Purchased Duration + Extension Period

• Expiration Date = Activation Date + Purchased Duration + Extension Period

• Grace Period = Grace Date − Expiration Date

• Grace Date = Expiration Date + Grace Period

• A subscription can't be activated if it has been cancelled.

• Activation Date = 01/01/9999 00:00:00 if not activated