Subscription business model Stories November 13, 2014

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

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.

Subscription business model Stories July 25, 2014

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

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)

Subscription business model Stories May 13, 2014

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

 

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.

Subscription business model Stories December 13, 2013

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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 …  expand full story

Subscription business model Stories November 20, 2013

Google drops Currents for Newsstand, iOS app coming sometime in 2014

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?

Subscription business model Stories September 10, 2012

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

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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