Fortune: But even more than just the principle at stake, you would argue that it makes long term economic sense — even for a media entity that doesn't rely on
subscription revenue like the New York Times?
Not exact matches
Offering both
subscription levels allows services
like Hulu and CBS to monetize their content with
revenue from both subscribers and advertisers — a model that has also been taken up by sites
like YouTube and Vimeo, both of which still have their free, ad - supported content, but have also introduced paid
subscription options.
The lure of predictable
revenue is so attractive right now that even companies which,
like Cisco, were once synonymous with hardware development are shaking up their strategy and benefitting from growing
subscription channels.
Like many other print - based publishers, Time Inc. has been struggling with declining advertising
revenue and a drop in
subscriptions, even for some of its flagship titles.
He also
likes the fact that a portion of the company's
revenue comes from
subscriptions.
While a high customer acquisition cost (CAC) could make sense if those customers generate consistent, long - term
revenue —
like in a
subscription - based business — most startups can't afford to indulge in high CAC.
These services include
subscription and mobile integration, built - in fraud protection, and payment analytics
like revenue growth.
The four critical factors are: (a) businesses with recurring
revenue bases —
like a renewable
subscription — are far better than ones dependent on constantly securing new customers; renewals are much easier and less expensive to secure than new sales; (b) customer retention is absolutely critical — all customers are very costly to acquire and very easy to lose in a world of almost infinite choices; (c) businesses based on products that require constant replacement or renewal (the «razor blade» model) are much more attractive than durable goods businesses (
like selling refrigerators) where the products have very long repurchase or replacement life cycles and where the market could even fairly quickly reach saturation points; and (d) businesses that offer products or services that had a predictably high rate of obsolescence were much more attractive than those where the products had long, useful lives.
Much of it was for straight - up services
like security, but about $ 5.4 billion was
subscription revenue connected to the sale of a product.
Plus, investors
like the recurring
revenue that
subscriptions provide.
Where once WhatsApp generated money via cheap 99 - cent
subscriptions, it now feeds information
like phone numbers and contacts into Facebook, generating
revenue but undermining the service's original purpose and security.
And much
like Adobe and Microsoft (MSFT), Autodesk is finding that transitioning users of its core franchises from licenses to
subscriptions is both making its business more predictable and increasing its long - term
revenue opportunity with major clients.
On the issue of how to support Canadian content when fewer Canadians are purchasing cable TV
subscriptions, the government tested four options to raise new money for Canadian content: making telecom companies divert some smartphone and Internet
revenue; requiring «foreign companies
like Netflix and iTunes» to devote a portion of
revenues; giving consumers the option of making a voluntary $ 2 contribution on their telecom or Netflix bill; or making telecom companies add an app to every smartphone sold in Canada that would provide access to Canadian music, TV and film for between $ 5 and $ 15 a month or a flat charge of $ 3 on the sale of all smartphones.
Rochelle Winn, from Match.com, commented that this potentially had «huge
revenue implications», raising the point that users could sign up for the service, message everyone they
liked, then leave before 14 days, and not have to pay the full
subscription fee.
Beyond the
revenues generated from new Prime
subscriptions, a move
like that could help poke at Amazon's search - focused rival.
They are more concerned with Amazon having too much power in e-book sales and distribution and trying to find alternative avenues to generate
revenue, such as e-Book
subscription websites
like Scribd and Oyster.
We believe that no other news organization has achieved digital subscriber numbers
like ours or comparable digital
subscription revenue.
Kinda
like how more than 40 % of AOL
revenue still comes from selling dial - up Internet service and related
subscription products.
He hopes, according to reporters and editors at the paper with whom I have spoken, to develop a worldwide digital newspaper suitable for e-readers
like the Kindle — a digital newspaper that might ultimately thrive on
subscription revenue.
Amazon's
subscription program typically charges retailers 30 % of all generated
revenues, which has caused retailers
like Amazon to create new ways for customers to purchase goods without having to pay a fee.
If you want to hide that your issue is with eReaders (and not eReader prices) you could always use fancy words
like freemium and
subscription revenue to pretend that your «eReaders are worth $ 0» feeling is actually a logical argument.
In response I explained my reasoning, and still feel that my old disclosure policy (which explicitly mentioned Amazon Associates
revenue) gave readers the information they needed to judge any possible conflicts of interest, but I've made it even more explicit so there's no mystery as to how I make (not very much) money from this site: Google Adsense, Amazon Associates, blog
subscriptions, and personal referral links to sites
like TopCashBack (the same links anyone else gets when they open an account).
Harding - Rolls also points out the increase in
revenue after a game's launch from microtransactions and the
like also makes a
subscription service less of a financial risk.
Like every legal publisher, CanLII needs a steady
revenue stream, whether in the form of a grant, for a fee for service, or for payment on
subscription for access to case law databases.
Brill said that writers will earn an average of $ 100,000 per piece, but suggested that they could stand to make even more than that by sharing in the
revenues generated by the project's
subscription business (this sounds a little
like the model that crowdfunding platform Beacon Reader uses, where
revenue is pooled among all the writers, but I'm pretty sure they don't pay $ 100,000 per piece).
The Creator app could lure social media stars away from competitors
like their long - standing home YouTube with its Studio app for creators, their
subscription revenue hub Patreon or Snapchat, which this month announced it's ready to embrace influencers.
Twitch has long since allowed its streamers to generate
revenue from their channels through things
like subscriptions, virtual tipping and game sales.
In the years ahead, however, the non-games will also begin to see their
revenues grow, thanks to newer
revenue streams
like in - app
subscriptions.
iMessage won't have a direct
revenue impact
like Apple Music on Android (because it needs a paid
subscription to use).
Subscription - free websites generate
revenue by displaying advertisements stemming from platforms
like Google's AdWords.
Microsoft has been trailing Sony's PlayStation 4 sales, and the company has started to look at boosting its Xbox
revenue from
subscription services
like the Xbox Game Pass.