Subscription Economy News: Week of 08/10/20

Subscription Economy News: Week of 08/10/20

Every week, we bring you the top stories and analyses from the global Subscription Economy.

New York Times exploring a Wirecutter subscription

Excerpt from an article by Sara Fischer on Axios

The New York Times is in the early stages of researching a consumer subscription for its product recommendation site Wirecutter.

A central part of The Times’ subscription strategy is providing services for people outside of news. More than 1/3 of The Times’ net new subscriptions last quarter came from services outside of its core news product, like Cooking and Games (Crosswords).

The Times has a stated goal of hitting 10 million subscribers by 2025. David Perpich, Head of Standalone Products at The Times says new subscription products could help it get there.

He notes that the “interconnectedness” across subscriptions is part of the company’s strategy. “They send traffic back and forth to each other, which adds more overall subscribers and builds affinity to the brand.”

Read the full article on Axios

British foldable bike maker plans to launch subscription service next month as the cycling boom continues

Excerpt from an article by Sam Shead on CNBC

British folding bike maker Brompton is planning to launch a subscription service next month as part of an effort to get more people using its bikes.

The London-based firm, which has sold around 500,000 bikes worldwide, will charge subscribers £30 ($39) a month if they sign up to a 12 month contract, or £42 a month if they opt for a rolling monthly contract. In return, they get to hold onto a £1,000 Brompton M3L bike, insurance, and access to a free repair service.

Brompton Bike Hire Managing Director Julian Scriven told CNBC that “demand for bikes has gone ballistic” during the coronavirus pandemic.

“The millennial generation and Gen X are very much into not having ownership of stuff,” he said, adding that they’re happy to rent a home or share an office. Other subscription services like Netflix, Spotify, and HelloFresh are also popular with this age group.

Read the full article on CNBC and learn more about the opportunity for Mobility as a Service

Avaya CEO: Record-Smashing Services, Subscriptions Are ‘Proof’ That COVID-19 Has Sped Digital Transformation

Excerpt from an article by Gina Narcisi on CRN

Unified communications powerhouse Avaya beat its own records around software, cloud and subscription sales as COVID-19 continues to pressure businesses to quickly transform their IT and communications strategies.

Perhaps the biggest change the company has seen as a result of the pandemic is the move to subscriptions.

“[Subscriptions] are great for customers because it provides them the Opex model they need, repositions the number of licenses that they have, and for us, it‘s three-plus years of confirmed contracts and a vehicle for us to move new, innovative technologies in with these offerings,” he said. ”Our largest VARs are doing quite well with subscriptions.”

For more, read the full article on CRN and download our latest Subscription Impact Report to understand the resiliency of subscription business models

Amazon Ties Video Games Deeper Into Prime Subscription Program

Excerpt from an article by Matt Day on Bloomberg

Amazon.com Inc. is making it easier for Prime subscribers to play games, the latest effort to extend the appeal of a loyalty program designed to keep shoppers engaged.

The world’s largest e-commerce company on Monday gave its more than 150 million Prime members access to free video-game content, eliminating a step that required them to link their Amazon account with one on Twitch, the company’s live-streaming subsidiary.

The service, once known as Prime Twitch, is now called Prime Gaming and offers special in-game perks and free downloadable PC games.

Amazon in 2016 launched a version of Prime pitched to fans of Twitch, the livestreaming site popular with gamers it acquired a few years before. Prime Gaming will absorb the perks previously housed in Twitch Prime.

For more, read the full article on Bloomberg

 

For more Subscription Economy resources and events, head to www.subscribed.com and subscribe to Zuora CEO Tien Tzuo’s Subscribed Weekly newsletter, coming to your inbox every Saturday. 

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