How global companies adopt & profit from subscriptions
Welcome to Subscriptions Weekly. This time, we talk about how businesses around the world are adopting subscriptions–and how companies and consumers benefit from them. We also check on Canva’s new plan for higher education institutions and FuboTV’s Q4 2022 earnings report.
How global companies are adopting subscriptions
It’s no surprise that more and more companies join subscriptions. It’s an effective business model for both brands and consumers: Companies find peace of mind with recurring revenue, while subscribers enjoy flexibility and convenience.
Personalization, cost-effectiveness, and product value are crucial to success in subscriptions. Are today’s companies approaching them in the right way? Let’s review the latest social media, vehicles, and airline subscription offers.
With declining revenues and tough global economic conditions, social networks are resorting to jumping in subscriptions–relying on the stability that recurring revenue offers.
Over the past few years, social networks have scaled back or adjusted payouts on creator programs. Now, they are offering more options to users.
Overall, their plans offer a mix of identity markers, increased reach, fewer ads, and enhanced visuals. Learn how Twitter, Meta, Snapchat, and Reddit approach subscriptions.
Over the last couple of years, companies like Mercedes-Benz, Tesla, BMW, and Toyota have successfully launched new monthly plans for users to rent cars easily, unlock vehicle capabilities, and more benefits.
Mercedes-Benz, for example, allows U.S. drivers to increase their electric cars’ performance with an annual $1,200 fee. The company earned $US 1 billion from in-car subscription services last year and aims to generate more than €2 billion by 2025.
Tesla is also one of the biggest competitors. The brand plans to offer Texans unlimited overnight home charging for $30/month as part of Tesla Electric membership, which provides sustainable energy to homes in the U.S.
As sanitary restrictions continue to ease, airline companies seek ways to increase loyalty and revenue. In February 2022, Alaska Airlines became one of the first companies to offer a monthly $49/month subscription. This week, Frontier Airlines launched its Go Wild pass, which gives unlimited travel from May to September 2023 for $399 per person.
Canva launches paid subscriptions for universities and colleges
The online graphic design platform has launched Canva for Campus. The subscription gives students, professors, staff, and campus administrators access to its full suite of tools, templates, and images.
Understanding what role subscriptions play in customers’ lives is key to designing products and offers that accommodate their needs, and Canva knows this.
Flexibility is one of the biggest trends for subscriptions this year. Want to know what else is? All the answers are just a click away.
FuboTV ends 2022 with 1.4M subscribers & passes $1B in yearly revenue
The company plans to offer a differentiated offer, especially in sports. FuboTV closed the year with 1.4 million subscribers in North America and posted healthy numbers in many financial categories in Q4. However, despite those positives, shares in Fubo fell 17% just after the opening bell.
Fubo expects to reach between $1.195 billion and $1.225 billion in revenue, a 23% YoY growth at the midpoint, and increase subscriber levels between 1.51 million to 1.53 million–a 5% growth. Learn more on Deadline.
Join Recurly at these exciting events
On-demand: 5 critical revenue recognition must-haves for subscription businesses. You can’t manage subscriptions at scale without getting revenue recognition right. Recurly finance experts discuss the challenges of accounting for recurring revenue. Watch now.
On-demand: The 2023 State of Subscriptions webinar. Set your team up for success with insights from more than 2,200 global brands. Learn the upcoming industry trends and consumer demands. Watch now.
On-demand: How to accelerate subscriber growth & revenue in 2023. Hear from Oscar Wall, Recurly EMEA General Manager, and Jonas Åström, Recuro Founder and CEO, as they discuss the macroeconomic landscape affecting the subscription economy and break down strategies to maximize revenue growth in 2023. Watch now.
From the Recurly blog
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