Tag: subscription model

Fox And Disney To Sell Skinny Bundle Via Hulu (Update: NBC Too)

Posted on by Lab Team

What Happened
Hulu is reportedly planning a new SVOD subscription for both live and on-demand access to content from broadcast and cable channels owned by Disney and 21st Century Fox, such as ABC, Fox, ESPN, and FX, for about $40 a month. The bundle is reportedly set to become available starting early next year.

Why Brands Should Care
With more and more viewers choosing the convenience of OTT streaming services over the rigid live programming grid and expensive cable TV bills, media owners are responding to consumer demand and slowly opening up to streaming platforms. Last year, for example, HBO launched standalone streaming service HBO Now to allow viewers to subscribe without a cable plan. While there is no doubt that TV networks will continue to sell their programming to cable companies as long as the money is good, this announcement nevertheless signals a new path for traditional media owners – it shows their willingness to experiment with the OTT subscription model and see if they can skip the middleman and sell directly to consumers, especially cord-cutters and cord-nevers.

For brands, this ongoing shift in content distribution means that they need to figure out new ways to get their messages across, as most subscription services do not carry traditional ads. For more information on how brands can reach viewers on streaming platforms with branded content and sponsorships, check out the Appified TV section in our Outlook 2016.

Update 5/3: New reports say that NBC has also joined the discussion of taking part in the Hulu bundle.

 

Source: Re/Code

Gillette Expands Razor Subscription Service

Posted on by Lab Team

What Happened
Leading shaving razor brand Gillette is expanding its subscription service to the U.K. as it looks to foster long-term customer loyalty with its subscription business. Gillette first launched the service in June 2014 in the U.S. as a response to the market disruption caused by the likes of Dollar Shave Club and Harry’s. The Gillette Shave Club offers free shipping and includes a loyalty program that rewards consumers for purchases.

What Brands Need To Do
In recent years, selling subscription-based access to content, products, or services has quickly become an even more popular business model adopted by a number of brands in various industries. Gillette is just one of the CPG brands that has embraced this type of direct selling model, cultivating a more direct relationship with their customers. As consumers’ shopping habits evolve, more retail and CPG brands should consider trying out the subscription model to cultivate customer loyalty.

For more on how brands can better build relationships with consumers through multiple touchpoints and channels, check out the Boundless Retail section in our Outlook 2016.

 

Source: Brand Channel