In some segments, like video-streaming services, where subscriptions have been around for years now, the market is experiencing a rush of competition from new players.
In the latest edition of the Subscription Commerce Tracker™, PYMNTS looks at how new industries, such as transportation and food delivery platforms, are employing subscriptions, as well as how businesses are attempting to use the model to entice customers away from a rising pool of competing brands.
Around the Subscription Commerce World
The former has announced a new gaming platform called Google Stadia that will allow users to access content. Meanwhile, Apple is continuing to experiment with the subscription model, rolling out its subscription service, Apple News, earlier in the month. Similar to other media subscription services, Apple News allows customers to access news and online magazines for a nominal monthly fee.
Meanwhile, telecom players like Verizon are taking their own shots at the subscription model. The company has created a subscription for tech enthusiasts that allows them to test new gadgets before deciding if they want to keep them.
For more on these stories, visit the Tracker’s News and Trends section.
Deep Dive: Telecom Companies Bet on Bundling Video Streaming
Companies like Verizon, Sprint and T-Mobile are all turning to partnerships with subscription-based video-streaming platforms, such as Netflix, to give them an edge over their long-time rivals. For more on how those partnerships are playing out, visit the Tracker’s Deep Dive.
How DoorDash Offers Sustainable Free Delivery
Delivery fees are one of the major pains that might cause a customer to abandon a food delivery platform for a cheaper option. Food delivery service DoorDash is looking to subscriptions to address the problem, offering free delivery with its monthly subscription service DashPass.
“With DashPass, they know that every time that they open up the DoorDash app, they’re going to get a free delivery,” Ruth said. “So, that combination of making a thing more affordable and more predictable was the best way we found to make this a daily habit.”
For more on DashPass and the ways subscriptions are working for food delivery, visit the Tracker’s feature story.
About The Tracker
The Subscription Commerce Tracker™, powered by Recurly, 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.
Sign up for the PYMNTS.com Newsletter to get updates on top stories and viral hits.