Subscription Economy News – Week of 4/15/2019

By Stephanie Li April 18, 2019

Every week, we bring you the top stories and analyses from the global Subscription Economy. 

Disney Leaps to Record as Investors Cheer Streaming Service
Excerpts from an article by Christopher Palmer in Bloomberg

Walt Disney Co. surged to an all-time high on enthusiasm for its coming Disney+ streaming service.

The company unveiled the service Thursday on a sound stage used to make the original “Mary Poppins,” delivering an Apple-style presentation of the online product. The platform will be several dollars less than Netflix’s most popular plan, which runs $11, and will weigh heavily on Disney’s finances. Disney+ isn’t expected to break even for about five years.

Beyond the price and technology, the new service will live or die based on its content — and that’s where Disney made a big statement. Disney+ will feature an arsenal of kid-friendly programming, including 13 classic animated movies, 21 Pixar features, original series, and material from its Marvel and Star Wars franchises.

“We are confident this is a product people are going to sign up in droves to have,” said CEO Bob Iger.

Read the full article in Bloomberg.

Walmart Thinks Inside The (Subscription) Box for Kid’s Clothing
Excerpts from an article in PYMNTS.  

To deliver personalized kids’ fashions to customers, retailers are teaming up with players in the subscription box space. Walmart, for instance, is partnering with KIDBOX to offer curated styleboxes for kids that customers can receive on a seasonal basis. Through the offering, customers on Walmart.com can access styles from brands such as Butter Super Soft, C&C California, Puma and BCBG. The stylebox will encompass four to five products for a price that the company says is “approximately 50 percent off the suggested retail price for the group of bundled items.”

Walmart U.S. eCommerce Head of Fashion Denise Incandela said in an announcement for the offering, “We are thrilled to partner with KIDBOX to introduce our first kids’ subscription apparel service offering premium fashion brands at a substantial savings.”

Shoppers who want to purchase the offering take a short online style quiz for their children. KIDBOX stylists then customize each box based on the season, the child’s location and his or her style preferences. Parents can schedule delivery on demand, and can sign up for automatic shipments for back-to-school, changing seasons and holidays. The stylebox will be available in sizes 0 to 16 for boys and 0 to 14 for girls, with products ranging from graphic T-shirts to denim, sweaters and dresses.

Read the full article in PYMNTS.

Automated Vehicles Will Unlock Countless as a Service Business Models
Excerpts from an article by William Drier in Forbes

The as-a-service (XaaS) business model is an increasingly popular strategy in the modern economy. Although using vehicles in XaaS models is not a new concept, the development of vehicle automation over the next decade will unlock a plethora of new XaaS applications as vehicle automation becomes more reliable and specialized.

Consider the following XaaS examples across the vehicle industry that are already generating revenue: Mobility as a Service, Platooning as a Service, Farming as a Service, and Haulage as a Service.

The development of AVs will unlock a host of new XaaS business models and challenge the notion that vehicle ownership is required across multiple industries.

Read the full article in Forbes

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