Subscription Economy News - Week of 4/22/2019

Subscription Economy News - Week of 4/22/2019

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

Car rental giant Enterprise launches its own subscription service
Excerpts from an article by Andrew J. Hawkins in The Verge

Enterprise Holdings, the parent company of car rental companies Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car, announced on Wednesday plans to launch a car subscription service. It’s the car rental giant’s first foray into the buzzy Mobility-as-a-Service space, and could possibly disrupt car companies’ own efforts to offer alternatives to car ownership.

Enterprise says customers pay a monthly fee to chose from six different vehicle classes — full-size and premium sedans, small and mid-sized SUVs, and small and medium-sized trucks — representing more than 20 makes and models. The company did not disclose the amount of the monthly fee, and a spokesperson did not immediately respond to an email.

Customers will be able to swap out vehicles up to four times per month. Other expenses, like physical damage and liability coverage, maintenance, registration, roadside assistance, and Sirius radio, are included in the monthly fee. Enterprise says it expects to launch the program in the next few weeks.

Read the full article in The Verge

Consumers look favorably on subscription model for financial services: study 
Excerpts from an article in Reuters. 

Paying a subscription fee for financial services like checking accounts and investment advice may become more common, Ernst and Young says in a new study that found interest among U.S. consumers ages 25 to 34.

The consulting firm found that a majority of the group was willing to pay for subscriptions that bundle products and services like saving accounts and life insurance and financial advice especially when tied to major life events like getting married or saving for college.

Many banks already provide incentives to bundle their services like lower interest rates and free perks, but few charge a monthly or annual fee for the convenience. Switching to a subscription model, which has gained popularity in the technology sector, could have a significant impact on revenue growth in banking, wealth management and insurance.

Read the full article in Reuters. 

Xbox Hardware Sales Slips As Software, Subscriptions Make Up Gap
Excerpts from an article by Steve Watts in Gamespot
Microsoft has released its Q3 earnings, and it suggests the current console generation is slowing down and ready for another refresh. Xbox console sales fell by 33% year-over-year, which the company attributes to a simple decrease in sales volume. In other words, people are simply buying fewer Xbox consoles.

However, the news wasn’t too grim for Microsoft. Overall game revenue actually increased by 5% year-over-year, thanks to strong third-party software sales and subscriptions. Xbox Live’s monthly active users hit 63 million, up 7% from last year. Altogether the games division raised $2.36 billion in revenue for the quarter, an YOY increase of $112 million.

Read the full article on Gamespot

Bridgestone gears up with launch of e-bike subscription stream Mobeflex
Excerpts from an article in Automotive World

Today global megatrends are transforming the future of mobility. Urbanisation, climate change, dwindling natural resources, digitisation and CASE (Connected, Autonomous, Shared and Electric) mobility are all challenging how people traditionally travel.

In the face of these opportunities, and to fulfil its mission to improve the way people, work, live, play and move, Bridgestone’s business in EMEA is rapidly transforming from a tyre producer into a leader in mobility solutions. This transformation has seen Bridgestone expand its portfolio in recent years with several digital solutions that offer convenience and peace of mind to customers – including Mobox, a subscription-based service for tyres and vehicle maintenance.

Now, with the launch of Mobeflex, Bridgestone is changing the way people move by pioneering an affordable and accessible subscription scheme for e-bikes in major French cities – including Paris, Rennes and Marseille. From just €59 per month, Mobeflex customers can choose from a selection of premium road, mountain, urban and racing bikes, each with quality batteries that are tailored to the specific travel needs of the user.

Read the full article in Automotive World

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