"By the end of the year, about a quarter of revenue at its Monks arm is expected to come from what it calls subscriptions - not in the Netflix sense but as a commercial model where, instead of selling hours, the agency sells ongoing access to a bundle that combines senior talent, AI workflows, agents and institutional knowledge for a steady, recurring fee."
"From there, the deal works less like a fixed checklist of tasks and more like a service that gets better over time. As the AI system improves, the agency can produce more work or do it faster without having to rewrite the contract. Those efficiency gains don't show up as fewer hours billed, they show up as more output inside the same fee."
S4 Capital's Monks division is shifting revenue toward subscription contracts, projecting about 25% of revenue from subscriptions by year-end. Subscriptions sell ongoing access to a bundled offering of senior talent, AI workflows, agents and institutional knowledge for a steady recurring fee, rather than hourly billing. Agreements typically run at least a year, folding initial setup into the subscription rather than billing a one-off project. The service model improves over time as tools, systems and AI models get better, enabling more output or faster delivery within the same fee. Compute costs are a concern, and agencies prefer wrapping pass-through costs into subscriptions to avoid procurement friction. Subscriptions are a waypoint before outcome-based models.
Read at Digiday
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