Weekly news roundup
1. Swedish edtech startup Booksquare aims to build a “Spotify for course literature” – Breakit
The idea behind Booksquare – which will be launched later this fall and is aimed at students – is to offer thousands of e-books in course literature and non-fiction via a subscription service.
“It is clear there is a demand for the service. We have recently started marketing and quite quickly passed a thousand students who have pre-registered interest on our website”
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2. Safello is getting ready to launch a subscription service for cryptocurrency – Pressrelease
The Swedish cryptocurrency brokerage Safello has announced the development and testing of a service that would allow customers to purchase cryptocurrency on a recurring basis, for instance to set up a savings plan in Bitcoin or Ethereum.
“We are proud to be able to onboard the first beta testers for Safello Subscription, an in-demand product from our users.”
3. Boardclic raises money for subscription service aimed towards analyzing executive boards – Dagens industri
Boardclic, which sells digital evaluations and analyzes of executive boards via subscriptions, has raised SEK 16 million, to recruit and expand beyond Sweden.
“This year, Boardclic estimates that it will have up to SEK 10 million in recurring income from subscriptions. Prices vary between customers and range from 6,000 to 14,000 euros per year. In total, the company has just over 70 active subscribers to the service.”
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4. Electronics subscription platform Grover raises $1 billion in new funding deal – Subscribed
Grover, a German circular economy start-up, has raised $1 billion in a mix of equity and asset-based financing to fuel its growth. The Berlin-based start-up provides access to consumer electronics on a subscription basis for customers rather than those customers outright purchasing products.
“Consumer preferences are quickly steering towards a subscription economy for electronic products, and as Europe’s fastest growing company in that space, Grover is poised for significant growth as a result.”
5. Peloton Connected Fitness subscriptions grow 114 percent – Quarterly report
Peloton Technology, an American automated and connected vehicle technology company, posted fourth quarter earnings results that saw connected fitness subscriptions grow 114 percent year over year to over 2.33 million.
“Digital subscriptions grew 176% to over 874 thousand, driven by higher free-trial volumes and improving conversion rates, partially offset by anticipated seasonality accompanying warmer weather trends.”
Weekly analysis roundup
1. SVoDs take churn revenue hit – Advanced Television
Findings from the research division of streaming TV specialist Wurl suggest that lost US revenue for four of the top SVoD platforms as a result of churn totalled $80.2 million (€68.1m) in the month of April 2021 alone. In its Churn Analysis Report 2021 Wurl Analytics analyzes the far-reaching financial impact of churn, both in terms of lost revenue and subscriber acquisition costs.
“Disney+, HBO Max and ViacomCBS experienced monthly churn rates ranging from 2 per cent to 7 per cent. This equates to huge subscriber losses and require substantial investment in both marketing and content to attract new subscribers who will replace lost subscribers, while also reaching publicly-stated growth targets.”
2. Debunking the usage vs subscription myth – ITProPortal
Usage-based and subscription-based pricing are often pitted against one another, but this is the wrong approach, argues John Philips, Managing Director for EMEA at Zuora, in an article in ITProPortal.
“However, in certain circles, the buzz around this model of usage-based pricing is leading to falsities. For example, there is talk that it is on its way to completely replacing other business models, such as subscription services. The truth is that subscriptions are a framework for an ongoing, customer-centric relationship.”
3. Bye ‘buy’ baby: subscription services are the future – Computer Weekly
The cloud has made technology ownership in 2021 a little like writing and posting letters; it’s quaint, and people certainly still do it, but it’s going out of fashion, writes Computer Weekly, in a piece taking a look at the changing face of IT consumption.
“[…] for many business customers that want to stay nimble while always enjoying the latest technology, the best way to purchase an asset is not to own it at all.”
