MovementSUBSCRIPTIONSERVICES
Jonathon MoodyVP Operations, Versature
Monday, 4 November, 13
SUBSCRIPTIONS?
Monday, 4 November, 13
Monday, 4 November, 13
MOVEMENT?
•New word for renting or leasing?
• Isn’t this just the old lease vs buy debate?
• Is the consumer ahead?
Monday, 4 November, 13
B I R C H B O Xthe Perfect Subscrip6on Business
Subscrip)ons in different categories already existed on the market
• Magazine and newspaper
subscrip6ons
• Telcoms and TV
• SoCware as a service
Tradi)onal categories Introduc)on to apparel Expansion to other categories
• Shoedazzle disrupted the
market by selling new pair
of shoes in subscrip6on for
$39.90
• Shoedazzle raised $60M in
funding
• Copycats of Shoedazzle
started to appear on the
market (JustFab)
• The model has spread to
other categories, e.g.
male essen6als
(Manpacks)
2007XIXth century 2010
Source: birchbox.com
Monday, 4 November, 13
Monday, 4 November, 13
Monday, 4 November, 13
CONSUMER GOODS?
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Monday, 4 November, 13
• Surveyed 293 business executives
•Majority are changing buying and selling habits to include subscription services
• 84% believe it will increase revenue
Source: http://info.zuora.com/2013EIUReport_Home.html
FLASH IN THE PAN?
Monday, 4 November, 13
BUSINESS SENSE?• Recurring revenue
• Can be less VC intensive
• Slow ramp up
• Complex billing and operations
• Launch from within non-subscription firm
• Pricing models
Monday, 4 November, 13
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