Every week, we bring you the top stories and analyses from the global Subscription Economy.
SoundCloud’s founders have launched an e-bike subscription service called ‘Dance’
Excerpt from an article by Sam Shead on CNBC
The founders of music streaming service SoundCloud, Eric Quidenus-Wahlforss and Alexander Ljung, have launched a new electric bike subscription start-up called “Dance” with their friend Christian Springub.
Instead of selling e-bikes outright, Dance wants to create a community of subscribers around the world. With e-bikes often selling for well over $2000, the SoundCloud founders believe that people will be more inclined to pay a monthly subscription fee via an app than to buy an e-bike outright.
“Buying and owning an e-bike is a hassle,” he said. “That is why we set out to create a frictionless e-bike subscription service with no upfront costs and all-inclusive services. Dance is the perfect solution for those who are looking for a healthy, environmentally friendly, time-saving and joyful form of mobility.”
Netflix tests new low-cost subscription plan in India
Excerpt from an article by Manish Singh on TechCrunch
Netflix is testing a new low-cost subscription tier in India as the on-demand video streaming service looks to court more subscribers in Asia’s third-largest economy.
The American giant has unveiled a “Mobile+” plan for some new and existing subscribers in India that delivers streaming in high-definition (HD) quality and supports viewing across mobile, tablet and computer screens (but not TV). The monthly tier is priced at 349 Indian rupees ($4.70).
A Netflix spokesperson confirmed the new test to TechCrunch. “We launched the Mobile Plan in India to make it easier for anyone with a smartphone to enjoy Netflix. We want to see if members like the added choice this offer brings. We’ll only roll it out long-term if they do,” the spokesperson said.
For more, read the full piece on TechCrunch and read Zuora CEO Tien Tzuo’s thoughts on how Netflix is marking a turning point for the Subscription Economy
Want to build a resilient business? Ask people to subscribe
Excerpt from an article by Shivangi Tikekar on Medium
Today, more than ever, the COVID-19 crisis is causing a shift in the way businesses function. One of the most significant changes has been from physical to digital. Businesses of varying sizes are seeing widespread adoption of subscription models, which guarantee them a recurring revenue base amid financial uncertainty.
The first challenge a subscription-based business might face is getting people to sign up. To get the ball rolling, many offer a free trial period, where a user can experience benefits of the service without paying a dime.
You don’t always have to offer a free trial to get subscribers. Hard paywalls, which prevent the reader from accessing any content without a subscription, are widely used in journalism and have been effective, on occasion.
Twitter says it’s looking at subscription options as ad revenue drops sharply
Excerpt from an article by Brian Fung on CNN Business
Twitter (TWTR) is actively exploring additional ways to make money from its users, including by considering a subscription model, CEO Jack Dorsey said Thursday. The move comes as Twitter suffers a sharp decline in its core advertising business.
“You will likely see some tests this year” of various approaches, Dorsey told analysts on an investor call held to discuss the company’s second quarter earnings results. Dorsey said he has “a really high bar for when we would ask consumers to pay for aspects of Twitter,” but confirmed that the company is seeking to diversify its sources of revenue in what are “very, very early phases of exploring.”
For more, read the full article on CNN Business