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Amazon Prime and other Subscription Businesses: How do you Value a Subscriber?
What's driven the growth of this industry for the last five to 10 years is this emergence of streaming. We just talked about how it's more than half the business today. It was single digit seven years ago and so that's just been rapid. All of the growth of the value of streaming has basically come from a few developed markets, historic markets that... See more
Colossus • Universal Music Group: The Gatekeepers of Music
Here’s the key takeaway—it is perfectly rational for subscription businesses to spend all their profits on growth, as long as their bucket doesn’t leak. Remember, as long as you are growing your ARR faster than your recurring expenses, you can step on the gas. As Ben Thompson of Stratechery notes, “You’re not so much selling a product as you are cr
... See moreTien Tzuo • Subscribed: Why the Subscription Model Will Be Your Company's Future - and What to Do About It
Balancing acquisition, revenue, and cash flow is at the core of running many business models, particularly those that rely on subscription revenue and paying to gain customers.
Alistair Croll • Lean Analytics: Use Data to Build a Better Startup Faster (Lean (O'Reilly))
-Cashflows and incentive structures: If early subscribers benefit from the future growth of the media business, where does that money come from? The answer is that it comes from your future cashflow, either in the form of extended subscriptions for the early adopter (as in the example above) or via access being sold on secondary markets (if that ea... See more
Joey DeBruin • Why the New York Times Should be Tokenized
The Rule of Threes: The subscription economy from a consumer’s perspective
SparrowAdviserssparrowone.substack.com
- Revenue retention moats built through content (topics, celebrity exclusives), social network effects and B2B partnerships