| Weekly News Roundup |
| 1. Five Swedish clothing-as-a-service companies have gone bankrupt – Breakit A couple of years ago, one Swedish upstart after another joined the fray to change the fashion industry and make it more sustainable by offering clothes via subscription or through renting, instead of selling them. But after a number of bankruptcies, only one company remains, writes Breakit. “We are convinced that the sharing economy is not a fad, but that more services of this kind will be developed.” Read more 2. Netflix cuts subscription prices in over 30 countries, but not in the Nordics – Wall Street Journal The move comes as the streaming company says members ‘have never had more choices when it comes to entertainment’. Other major streaming services have spent recent quarters touting the value that they deliver to consumers relative to the monthly fee they charge, and several have raised prices in the U.S. in recent months. “It definitely goes against the recent trends not just for Netflix, but for the broader streaming industry,” John Hodulik, a media and entertainment analyst at UBS Group AG, said of Netflix’s recent price cuts. “Some of these cuts on a percentage basis are substantial.” Read more 3. Hotel group CitizenM looks for emotional connections through fledgling subscription model – Skift Dutch hotel group CitizenM has signed 18,000 members to its loyalty program that launched 10 months ago. But the company views the $12-a-month subscription as a means to grow its business rather than a revenue stream. “We don’t have enough scale to compete with the big chains of the world to offer that pay-to-play dynamic. We’re trying to understand what the short-term sacrifice would be, via room discounts and throwing in a lot of room upgrades and other ancillaries as part of a bundle, in exchange for what we see as a longer term play.” Read more 4. The Information launches new subscription product for data and charts – Axios The tech site The Information is launching a new premium subscription offering for professionals that includes access to exclusive charts, proprietary data and reader surveys. “The Information Pro” subscription will cost $999 annually. “The insights are driven by The Information’s newsroom, which will help ensure they are timely and relevant, [CEO and founder Jessica] Lessin said. For example, one dataset the team is working on is a continually-updated IPO tracker.” Read more 5. Pill subscription Luma uses AI and 3D printing for personalized menopause support – Trendwatching Since there’s no one-size-fits-all solution for menopause effects, industrial designers at UK based Morrama have dreamt up Luma, a subscription service that delivers monthly boxes of pills tailored to each user and the issues they’re currently facing. “Luma works with an app that tracks the subscriber’s symptoms, lifestyle and preferences through smartwatch and sensor data, as well as manual inputs. The app then uses AI to analyze the data and create a personalized recipe for each user. That formula is 3D printed into a single pill that makes taking the ingredients easy and convenient.” Read more 6. Mercedes doubles down on subscription tech with new payment system – Teslarati Mercedes became a controversial figure in the automotive world after it began offering customers new features they could unlock by paying a subscription. This includes features like rear-wheel steering and mobile A/C controls. To support those systems, Mercedes has unveiled an all-new in-car payment system, complete with a fingerprint scanner for verification. “The controversy stems from the fact that, as most of these services are already built into the finished vehicle, many believe they are entitled to those functions after buying the vehicle or purchasing the systems initially.” Read more Weekly Analysis Roundup 1. A SaaS leader’s guide to pricing in 2023 – Venture Beat SaaS companies are heading into 2023 in ‘hard mode’ and the focus is shifting from rapid growth to efficiency. Pricing is one of the most important levers for growth for SaaS companies as they look to reduce churn while maximizing value from existing customers, writes Griffin Perry, CEO of the SaaS pricing company m3ter, in a guest post on Venture Beat. “The pricing strategy that will work best for your business depends on your customers. Don’t risk any changes until you have a strong, data-driven understanding of their needs, priorities and how they’re using your product. Once you have this, keep it in sharp focus as you assess new pricing models.” Read more 2. Report: Car subscription shapes up as a profitable stream – Accenture Some automakers and analysts estimate that 20-30 percent of all new cars handed over to customers in 2025 will be tied to a subscription. But how does this growth fit into manufacturers’ new car offerings and what are some of the pitfalls to consider when setting up this new business model? In a new report, Accenture tries to find out. “Both the analysis and expert interviews suggest that vehicle subscription can be a source of long-term profitability for automakers. Indeed, it is ultimately likely to become one of the four key pillars of automotive revenues (alongside cash purchase, financing, and leasing).” Read more 3. Here’s how major social media companies are adopting subscriptions – Techcrunch For the longest time, social media companies have relied on the fact that their service is “free” to use. With declining revenues and tough global economic conditions, social networks are now resorting to offering subscriptions in one way or another. Techcrunch has gone through the offerings from Meta, Twitter, Snapchat, Tumblr and Reddit. “While these services have a massive user base, they haven’t made any notable progress. Snapchat+ has more than 2 million subscribers, Twitter Blue reportedly has nearly 300,000 users, data suggest Reddit Premium users are under 400,000, and Meta is just getting started.” Read more |
