Subscription business model

11 'Subscription business model' stories March 2011 - November 2014

Rdio matches Spotify’s family deal of $5/month for each extra person

Ben Lovejoy Nov 13 2014 - 3:57 am PT

rdio-family

Streaming music service Rdio has reduced the price of its family membership plans to match the deal Spotify announced last month of half-price subscriptions for additional family members. This means the first member pays the standard $10/month fee while up to four extra family members get their own account for $5/month.

Rdio has offered family memberships for several years now, but this price reduction brings the service into line with Spotify. As with Spotify, each family member gets their own playlists, keeping things tidy – especially now that you can listen to Rdio in your car thanks to CarPlay support.

With our Family Plan, say goodbye to having only one person being able to listen at a time — or having to share favorites and playlists that aren’t really your own. And say goodbye to friends wondering why “you” are listening to your kid’s music that’s overcrowding the Home feed.

Interestingly, $5/month is rumored to be Apple’s target price when it relaunches Beats Music under its own branding. The company has reportedly been asking record labels to reduce the fees they charge for music streaming to make the deal possible. It has been suggested that the relaunch may take place in February.

Apple has been under pressure to launch a true on-demand music streaming service in addition to iTunes Radio as the money continues to move from downloads to streaming.

OECD data reveals one mobile Internet connection for every person in the U.S.

Ben Lovejoy Jul 25 2014 - 4:54 am PT

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oecd

Data released by the Organisation for Economic Co-operation and Development reveals that there are now as many mobile Internet connections as there are people in the USA. While not everyone has a mobile data SIM or dongle, those with multiple devices make up for those left out, taking the average to a fraction over 100 percent.

Six other countries also manage to have more mobile data subscriptions than people, Finland topping the list with an average of 1.25 connections per person. The overall average across the 34 countries within the OECD grouping was 72.4 percent.

(via The Register)

Beats Music had only 111k subscribers in March, claims music blog

Ben Lovejoy May 13 2014 - 5:35 am PT

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royalties

If a leaked royalties report posted by a musician’s blog is genuine, Beats Music subscribers certainly played no part in Apple’s presumed decision to acquire the company. The report appears to indicate that the service paid first quarter royalties to musicians based on total subscriber numbers of just 110,992.

As Business Insider notes, there are a couple of complications that make it hard to determine the actual number of paid subscribers. First, the majority of subscriptions are family packages, where a single payment of $14.99 a month allows up to five users to access the service. The total number of users will thus be higher than the raw subscription figures.

Against this, however, a promotion by AT&T offering free 90-day subscriptions mean that many of those appearing in the subscriber numbers may have paid nothing.

Either way, the numbers are irrelevant to Apple. With the headphone business bringing in $1B a year, Apple appears to have bought itself a well-respected streaming music technology, unrivalled music industry expertise and contacts, and a highly successful marketing team, for a bargain price.

Adobe (ADBE) stock rockets after announcing on-target earnings and strong subscription growth

Ben Lovejoy Dec 13 2013 - 7:30 am PT

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Adobe stock climbed 10 percent to just under $60 in opening trading after announcing Q4 earnings in line with expectations, and strong growth in subscriptions as the company transitions away from one-time purchase licences.

While year-on-year numbers were poor, revenue down almost 10 percent and earnings almost halved, Adobe has been at pains to point out this was expected as it shifted to subscription-based sales.

As Adobe customers migrate from a legacy Creative Suite perpetual licensing model to new Creative Cloud subscriptions, revenue is recognized over time as opposed to at the time of purchase.

See below for a cool infographic of Adobe by the numbers …
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Google drops Currents for Newsstand, iOS app coming sometime in 2014

David Beren Nov 20 2013 - 9:59 am PT

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A quick news blip for the 12 remaining Google Currents users on iOS as the company just announced Currents will be going by the wayside in favor of Google’s aptly named “Newsstand.” Aside from Google’s ridiculously original name, the company is ready to place all of your magazine, newspaper, blog and news site subscriptions in one place. Any other iOS users having a deja vu moment with the “Newsstand” name right about now?

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Nielsen: Young adults and teens push smartphone growth in US, with iOS at 34 percent of OS market share in July

Élyse Betters Sep 10 2012 - 9:05 am PT

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While getting its graphics’ proportions right this time around, research firm Nielsen revealed July 2012 findings today and announced 55.5-percent of mobile subscribers in the United States now own smartphones with young adults and teenagers leading the charge.

According to the Nielsen blog:

As mobile manufacturers announce new phones in advance of the holidays, Nielsen took a snapshot look at the mobile market in the U.S. Smartphone penetration continued to grow in July 2012, with 55.5 percent of mobile subscribers in the U.S. now owning smartphones. This is a significant increase compared to July 2011 when only 41 percent of mobile subscribers owned smartphones.

Overall, young adults are leading the growth in smartphone ownership in the U.S., with 74 percent of 25-34 year-olds now owning smartphones, up from 59 percent in July 2011. Interestingly, teenagers between 13 and17 years old demonstrated the most dramatic increases in smartphone adoption, with the majority of American teens (58%) owning a smartphone, compared to roughly a third (36%) of teens saying they owned a smartphone just a year ago.

Android still dominates the smartphone OS market in terms of owners and recent acquirers, but iOS maintains second place with 34 percent of smartphone owners and 33 percent of recent acquirers.

Nielsen’s monthly survey is conducted across 20,000 mobile subscribers from the ages of 13 and up in the U.S.

Get additional details at Nielsen.

This article is cross-posted on 9to5Google.

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MLB at Bat ’12 available for free on App Store Feb. 29 with $119 subscription

Jake Smith Feb 17 2012 - 2:04 pm PT

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Pitchers and Catchers are set to report over the next few days and MLB is getting its 2012 App ready

Baseball fans will be happy to hear that Major League Baseball is again bringing the MLB at Bat app back to the App Store so they can enjoy every game throughout the season on their iOS device. In previous years, the MLB at Bat app on the App Store made available audio of the games and in-game statistics. A premium package could open video for all games. This year, MLB is changing the way they bring you games.

Luckily for this season, MLB confirmed with EverythingiCafe that MLB at Bat ’12 would be available for free on the App Store for both the iPhone and iPad— as long as you pay for the one time subscription. The app will stream both audio and video and bring in-game stats.

MLB at Bat ’12 will be available Feb. 29 for free. However, if you want to use the app, you will have to pay a once-a-year $119 subscription as a returning customer or $125 as a new customer. Those who subscribe can view 150 Spring Training games and all 2,430 regular season games, though some are subject black outs. You can now sign up for the MLB.TV season on the MLB website. The first game will stream March 3.

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Updated: Apple opens up monthly subscription model to game publishers

Jordan Kahn Nov 22 2011 - 3:35 pm PT

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Update: There has been some doubt regarding Bloomberg’s initial report and whether or not this is a new App Store policy introduced by Apple. One 9to5Mac reader writes:

This App is not doing any thing special that other subscription services don’t already do on iOS. This is nothing more than a remote desktop app (like iswiffer or many others) that let you play flash games. This is just locked down to their own server and their own flash games optimized for touch. You must have internet access for this to work (like all other remote desktop apps). This is not some new business model for the app store.

Apple will now begin letting video game publishers offer their titles to iPad users via a subscription model, a revenue stream for publishers and purchasing option for users that was previously only available for digital publications. Bloomberg reports:

Big Fish Games, a Seattle-based game publisher, won approval from Apple to become the first to offer users access to dozens of titles for $6.99 a month. Until now, games have only been available one at a time, requiring users to download individual applications.

So essentially, a user who buys into a Big Fish Games subscription will be able to play unlimited games that the publisher makes available through a dedicated app. Games will be streamed to a users iPad from Big Fish’s data centers, and will initially require the user have Wi-Fi access to play. As always, Apple will still collect a 30% cut of revenues.

When it comes to the process of Big Fish convincing Apple of the model, the company’s founder Paul Thelen had this to say:
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New York Times opens up in-app subscriptions

Jake Smith Jun 30 2011 - 2:44 pm PT

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Using Apple’s set of APIs, the New York Times has opened up in-app subscriptions in their iPhone and iPad app reports Macstories. After setting a paywall not too long ago the New York Times has been looking for ways to get their users to sign up for the subscription. It appears the Times has found their way, through the app store, offering subscriptions for website, iPhone, and iPad access. The Times is charging users $15 for access to the website plus iPhone, $20 for website plus iPad, and a combo of all three for $35. If you’re interested download the apps here and here.

In this digital age, do you agree with the New York Time’s subscription model?

The Daily raising pay wall next week, launching in Europe this summer

9to5 Staff Mar 17 2011 - 3:54 pm PT

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As if today’s pay wall announcement from the New York Times Company wasn’t enough, the news broke that an iPad-exclusive newspaper, The Daily, will begin charging for access next week. Unlike the Times’ entry-level $15 a month subscription for reading online articles on smartphones, the privilege of enjoying The Daily on your iPad costs just 99 cents per week, or forty bucks per year. Rupert Murdoch’s digital-only newspaper is slated to launch in Western Europe by summer, The Guardian reports. The exact release depends on when Apple’s new iOS subscription service becomes available in the country.

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The New York Times raises a paywall beginning March 28, launches in-app iOS subscriptions

9to5 Staff Mar 17 2011 - 9:50 am PT

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The New York Times made the announcement today that marks the end of free news on their website. From now on, you will be able to access up to twenty online articles per month free of charge. Reading the news on your smartphone will set you back fifteen bucks a month and five more bucks if you’re accessing their content from a tablet. They also offer a combined $35 per month plan that buys you full access to the New York Times website via the web, as well as smartphone and tablet apps.

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