Subscriptions in 2024: News from Amazon, Snapchat, and more
Welcome back to Subscriptions Weekly! This time, we review the appeal of the subscription-based model for media companies and how more streaming services continue to bundle up. We also check on Amazon’s grocery delivery service and Snapchat’s new generative AI features.
Why the future of media is subscription-based
A seismic shift is underway in the ever-evolving media landscape, and subscription-based models are emerging as the linchpin of the industry's future. The strategic move of media giants provides a compelling roadmap for the future with three key value propositions of the subscription model: predictable revenue, enhanced privacy and security, and a refined user experience. Read more on Forbes.
Amazon pilots grocery subscription service in three cities
Amazon is testing a grocery subscription program for its Prime members in Columbus, Ohio; Sacramento, California; and Denver. The service, which costs $9.99/monthly, offers customers unlimited free delivery from Amazon Fresh and Whole Foods Market on orders over $35 and 30-minute pickup regardless of order size. Learn more on Retail Dive.
Snapchat now lets subscribers share AI-generated snaps
Snapchat Plus subscribers can now create images based on a text prompt and send them to friends. The messaging app is also rolling out other AI-powered perks for subscribers, including a way to make the subject of a photo appear farther away from the camera by using AI to fill in the background. Read more on The Verge.
As streaming gets more costly, companies offer bundling and promos
Media companies have been implementing strategies to help grow subscribers: bundling and promotions. Most bundling and promotions are available for the less expensive ad-supported tiers. A few recent surveys indicated video streamers are on the right track in bundling their services and lowering costs. Learn more on Forbes.
📅 Reserve your copy: The 2024 State of Subscriptions report
Uncover benchmarks and predictions drawn from Recurly’s database of more than 2,200 global brands and 64 million unique subscribers in our State of Subscriptions report, crafted to provide unique insights and trends to guide your growth strategy in 2024. Join the waitlist.
📣 Save your spot! The 2024 State of Subscriptions virtual event
Join us on February 1st to hear from industry leaders at Recurly and Optimized Payments as they unveil key benchmarks, actionable insights, and data-driven predictions for the next year. Save your spot.