[LooseWire Blog] How do subscriptions fare in a recession?
Dear Subscriber, hope you're staying safe and well. Recently, I wrote about how the subscription economy fares in a recession. I’ve also included links to a couple of recent pieces you might have missed: Apple Watch VS the Swiss Watch Industry and AirPods.
As ever, thoughts, comments, ideas and brickbats are welcome. Doesn’t have to be about the topic in hand, or even tech-related. Oh, and unsub details at the bottom (you're on this infrequent list because we've talked in the past, we're friends or both, but I won't be offended if it's one email newsletter too much. We’ve all been there.)
I'm particularly interested in emerging technology, especially but not solely, in Asia Pacific, so if you have any leads or thoughts, they're very welcome.
Jeremy
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How do subscriptions fare in a recession?
The subscription model (‘subscription economy’ was a term apparently coined at least four years ago) is becoming de rigeur in many zones. App Annie’s recent State of Mobile report found that In App subscriptions contributed to 96% of spend in the top non-gaming apps. As an overall proportion of spend they rose from 18% in 2016 to 28% in 2019 (games, of course, still dominate.) It concluded in a recent post: “Clearly companies across industries need to not only be thinking about their mobile strategy, but also their subscription strategy, if they want to succeed in 2020.” But is this a wise move?
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Swiss to Cheese: Apple Transforms Another Industry
Another Apple product I’m unlikely to purchase — a smartwatch. I don’t need more screens to look at frankly, but I doff my smartcap to the company for the way they’ve usurped an industry that already existed and then doubled it. This approach has some parallels to the AirPod strategy, which I looked at before : take a market that exists, wait until the technology works, have a couple of shots at it, dominate it and then expand it. Here are the latest numbers, courtesy of Strategy Analytics...
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Apple, Again, Creates a Market Out of Nothing. And It’s Massive
Having recently (finally) bought a pair of big chunky Bluetooth headphones, thinking they were so commonplace I wouldn’t get any weird looks, I now realise that once again I’m at the wrong end of a trend curve. People are staring at me — and not for my rugged visage. I’m the oddity: everyone else is sporting wireless earphones, the Apple AirPods variety (although I suspect quite a few of them are the cheap knockoffs which are indistinguishable in look and a tenth the price.)
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