Nordic Subscription Economy: Week 47 -2021

By  Recuro
Nov 24th 2021
Read time: 
3 minutes
Table of contents

Weekly news roundup

1. Three Nordic podcasting companies merge into one – Dagens industri

The podcasting companies Soundtelling, Just Stories and Third Ear, from Sweden and Denmark, will merge into one company.  The aim of the company is to ride the podcast subscription wave that Apple, Acast and Spotify has created.

“We have seen streaming services grow in the TV industry and now we believe that we are facing a similar development in the podcast industry. Consolidation of companies that own popular program formats will then naturally be the next step”

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2. Nokia to launch cloud-based software subscription service – Reuters

After much delay, the Finnish telecom giant Nokia plans to launch a cloud-based software subscription service targeting telecom companies for providing software around analytics, security and data management.

“When Nokia created its software division in 2016, the idea was to get into subscription too, but we never executed, Senior Vice President Mark Bunn said in an interview. “Now we have executed on it … we have built underlying technology to be able to operate at scale,” he said.”

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3. Apple launches subscription service aimed at small-business users – Reuters

Business Essentials, as Apple is calling the service, is similar to management software that companies such as Microsoft Corp or VMware Inc sell to large business for setting up and keeping secure their fleets of phones, laptops and tablets. But Apple’s version is simplified for businesses with between 50 and 500 employees that have either a small IT department or none at all.

“For an additional monthly cost, Apple will also offer a service to repair or replace broken hardware at a business within four hours, though the company said it has not yet determined pricing for that service.”

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4. E-bike subscription service Zoomo raises $60 million Series B fundraise – Techcrunch

Australian startup Zoomo has just announced a $60 million Series B fundraise, money it aims to use to transform the way companies look at last-mile delivery.

“Zoomo offers gig workers a weekly subscription, which includes servicing, for anywhere from $20 per week to $49 per week.”

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5. How Spain’s Eldiario found success with a novel subscription twist – Bloomberg

Eldiario, a newspaper founded a decade ago went digital and spearheaded the pay-what-you-want model. Today, Eldiario is Spain’s most widely read digital-only newspaper, and its 61,000 paying members puts it just behind overall leader El País, a national institution

“[…] instead of selling subscriptions, Escolar introduced a fee-based membership model that let readers pay as much as they wanted—or nothing at all.”

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Weekly analysis roundup

1. The rapid growth of retail subscription services could be coming to an end – The Economist

Box-sellers are trying to adapt after the pandemic, writes The Economist. Competition has intensified, both from a fresh influx of startups and large established firms and more firms are fighting over a pie that will expand more slowly as customers return to physical shops.

“Stitch Fix, an online clothing marketplace, has introduced one-off purchases. But acting more like a regular online retailer diminishes the advantages of selling subscriptions, and may not stop shoppers from clicking the “unsubscribe” button.”

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2. Subscription model Innovation in the energy sector – Subscribed

Solar power will eventually become a pure subscription model, predicts Zuora subscription CEO Tien Tzuo. Regular equipment upgrades will simply become part of the package and the customer will just be subscribing to clean and efficient power, and the equipment and upkeep aspects will dissolve away.

“With solar, you’re essentially just subscribing to the access of solar panels. You are subsidizing their manufacture, installation and maintenance costs, which all continue to drop precipitously. It’s a simple hardware-as-a-service model.”

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3. Customer lifetime value comes to the auto industry – Subscribed

EV maker Rivian’s stock price has surged since it’s IPO. Rivian brings forward something new to the auto industry, writes they place subscriptions squarely at the center of their business model.

“We assume the LTR opportunity from software to be $15,500. This is comprised of autonomous driving capabilities of $10,000, and a monthly subscription plan for infotainment, connectivity, diagnostics, and other services valued at $5,500, based on publicly disclosed industry benchmarks.”

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