Banking On Recurring Revenue Online

Recurring Revenue In The Cloud

Many common traditions have held up for centuries (Thanksgiving dinner, anyone?), but the post millennial world of business and technology has perennially followed the idea that traditions are meant to be broken.

Take a look at the radical change in the way content is consumed.Traditionally, cell phones were used as mobile devices for conversation and upgraded every two years, usually when a service plan expired. Movie lovers rented and returned DVDs to a store (sometimes with a late fee). People watched music videos on MTV and bought CDs. Those conventions, once considered bleeding edge, are long gone. Over the last decade our society has completely changed the way it consumes content, thanks in large part to the rise of mobile devices and the ubiquity of cheap high-speed Internet connectivity and wifi. The broad based adoption of recurring revenue by businesses creating and distributing this content has only accelerated this trend.

Breaking The Old Traditions

In short, if you think the way you run your business will remain the same over the next five years, you’re in for an unpleasant surprise.

Businesses today must break old traditions in order to meet the constantly changing demands and needs of customers, who increasingly want what they want, when they want it and how they want it. To take advantage, companies are switching to recurring services. 47% of U.S. businesses have already adopted or are considering adopting a recurring revenue model and the number is steadily rising. The result is undeniable – business booms, upstarts become household names, and established enterprises are reinvented.

Yet supporting this level of demand is increasingly difficult.  It requires flexible business models and processes that can easily repackage existing products and services into dynamic product catalogs full of tailored offerings that meet changing needs.

Despite the challenges, the carrot is proving tempting. Check out these companies who have successfully leveraged the content provided via their networks and repackaged it into recurring services:

YouTube Red

This powerhouse recently joined the recurring revenue subscription world with the announcement of YouTube Red, a $9.99 ad-free monthly subscription channel stocked with original programming like shows from popular YouTubersPewDewPie, Lilly Singh, and the Fine Brothers. The service also offers access to YouTube’s Gaming app and YouTube Music, a new app that replaces YouTube Music Key (launching later this year). Subscribers can access this content on their computer, mobile, and television.

you-tube-red

YouTube Red is welcomed by avid YouTubers (both content uploaders and content viewers) who are annoyed by the platform’s video ads. According to the company,YouTube Red differs from Netflix’s movies, shows, and originals as it will “offer premium features with a new way to enjoy music and some original content from people who have become really popular on YouTube.”

Apple

Apple is no stranger to disruption. The company revolutionized the mobile phone, sparking the transformation into the multi-use smart phone it is today. And Apple continues to monetize new opportunities by constantly changing existing products and services to mirror consumer changes and preferences. After dominating music with the iTunes store, Apple released Apple Music Radio, a subscription music service, when iTunes sales declined.

But Apple did not stop with services – the company has even turned to recurring revenue models for its products with the launch of the Apple iPhone Upgrade Program earlier this year. The 6S and 6S Plus iPhone models are available through a monthly payment plan directly with Apple, with plans starting at $32/month and an upgrade offer every 12 months. This new payment option indicates that Apple is ready to dive head first into expanding its recurring revenue models as it empowers Apple to establish a more predictable revenue stream for years out, all while they fortify its brand loyalty by tethering customers to more frequent upgrades on an affordable basis.

Nickelodeon

Earlier this year, Nickelodeon targeted a new market when it launched Noggin, a mobile subscription app for preschoolers featuring award-winning shows along with music and educational videos. Noggin targets the mobile consumer, like a family with young children on a road trip to Disneyland.

With Noggin’s launch, it’s clear that Viacom sees the long-term benefits of recurring revenue. When the company didn’t renew its contract with Netflix in 2013, it shut off streaming access to popular Nickelodeon shows. As a result, Viacom knew this service would be attractive to parents of Nickelodeon-loving children, who would buy and then take their favorite programs on the road with them via tablet or smartphone. As consumers continue to shift away from cable and towards streaming, Viacom found a way to continue to monetize Nickelodeon’s most popular shows through a subscription service that guarantees a continuous revenue stream.

The good news is that successful monetization via recurring revenue does not require you to reinvent the wheel. You just have to replace the spokes.Doing so requires a flexible business model and agile billing system that can adapt your continuously changing needs. The way your business runs will change – are you going to be ready?

By Tom Dibble

Gary Bernstein

Mapping Crime Though Big Data – Leading Sources

Online Crime Maps Online crime maps is a set of tools used by law enforcement agencies to map and make an analysis of crimes and incidents in order to find possible patterns in them. Online ...
Sebastian Grady

Leveraging Hybrid IT Now to Power Digital Transformation 

Leveraging Hybrid IT Summary: Cloud is a dominant force in enterprise software today. Global market turbulence is forcing some companies to accelerate moving parts of IT to the cloud sooner than expected to adapt to ...
Martin Mendelsohn

How Will COVID-19 Impact Security Talent?

New Security Talent As we emerge from the era of COVID-19, unemployment will recede, and new jobs will be created more rapidly than jobs were lost between March and May of this year. We’re already ...
The Top 20 Machine Learning Startups To Watch In 2021

The Top 20 Machine Learning Startups To Watch In 2021

Machine Learning Startups There are a record number of 9,977 machine learning startups and companies in Crunchbase today, an 8.2% increase over the 9,216 startups listed in 2020 and a 14.6% increase over the 8,705 ...
Gary Taylor

5 Reasons Why Virtual Desktop Infrastructure Will Go Mainstream Post 2020

Virtual Desktop Infrastructure Growth Virtual Desktop Infrastructure (VDI) technology enables remote users to access their desktop from anywhere using an internet connection. This technology has been around for a couple of decades but never received ...

PROXY SERVICES

The CloudTweaks technology lists will include updated resources to leading services from around the globe. Examples include leading IT Monitoring Services, Bootcamps, VPNs, CDNs, Reseller Programs and much more...

  • Smartproxy

    Smartproxy

    Smartproxy is a rising star in the constantly growing proxy market. Smartproxy offers awarded customer service, impressive performance, and is serious about your anonymity (yes, cybersecurity matters). The latest features developed by Smartproxy are 30 minute long sticky sessions and Google Proxies. Rumor has it, the latter guarantee 100% success rate

  • Bright Data

    Bright Data

    Bright Data’s network is one of the most robust of its kind globally. Here are its stark advantages: Extremely stable connection for long sessions (99.99% uptime guaranteed). Free to integrate with our Proxy Manager which allows you to define custom rules for optimized results. Send unlimited concurrent requests increasing speed, cost-effectiveness, and overall efficiency.

  • Rsocks

    Rsocks

    RSocks team offers a huge amount of residential plans which were developed for plenty of tasks and, most importantly, has been proved to be quite efficient. Such variety has been created on purpose to let everyone choose a plan for a reasonable price, online, rotation and other parameters.

  • Storm Proxies

    Storm Proxies

    Storm Proxies' network is optimized for high performance and fast multi-threaded tools. You get unlimited bandwidth. No hidden costs, no limits on bandwidth. Try Storm Proxies 100% Risk Free. If you are not happy with the service email us within 24 hours of purchase and we will refund you.