In the music world, subscription commerce has climbed to the top of the charts.
An increasing number of consumers are buying into subscription services, with 11 million consumers in the United States alone paying for recurring services or products. And now, industries of all shapes and sizes are looking to reach their own new heights.
In the latest edition of the Subscription Commerce Tracker™, PYMNTS dives into the latest debuts from around the subscription space.
Around the Subscription Commerce World
Subscription services may just be the music industry’s biggest star – just ask Pandora.
One of the early music subscription giants, Pandora recently announced a positive end to last year, posting a 63 percent jump in subscription-based revenue and bringing its total annual revenue to $97.7 million. The news got investors excited about Pandora’s next act, and shares rose by 9 percent following the announcement.
India is also seeing great improvement in subscription sales. Music and entertainment-related subscription services have experienced double-digit growth in the past year, recently topping $23 billion in industry value. The growth is projected to continue in the coming years, with researchers predicting that the digital-only subscription market will reach 4 billion customers by 2020.
Google also seems to like the sound of subscription commerce.
The company’s video streaming subsidiary, YouTube, is considering getting in on the music-streaming act. At the recent South by Southwest (SXSW) festival in Austin, Texas, YouTube’s global head of music, Lyor Cohen, said the company was working to create a possible new premium subscription music service that would compete with platforms like Spotify and Apple Music. YouTube’s service would aim to help both music labels to promote new artists and to help artists connect with fans.
Check out the Tracker’s News and Trends section for a roundup of the latest news and trends across the subscription landscape.
Keeping Anglers on the Subscription Hook
While digital music services are having their moment in the sun, one company is targeting a far less tech-intensive hobby with its subscription offering.
Postfly is hoping to become to amateur anglers what Spotify has become for music streamers. But that can be easier said than done, according to Postfly founder and president Brian Runnals.
In an interview for this month’s Subscription Commerce Tracker™ feature story, Runnals told PYMNTS how and why the company relies on a combination of customer service, education and product to lure in new subscribers, and keep them hooked for the long haul.
“We really want to constantly try to improve the overall experience, whether that’s by changing our products up or experimenting with other things to see what moves the needle,” he said. “Anything that gets customers to stick around with us for a longer period of time.”
Download the Tracker to read the full feature story and access other subscription commerce insights.
About the Tracker™
The Subscription Commerce Tracker™, powered by Recurly, is a bimonthly report that explores how companies use subscription-based commerce to build long-term customer relationships and steady revenue sources. The report includes notable developments in the market and the companies that are rapidly innovating the space.