Recurring Revenue Expert Notes Netflix’s Resurgence, YouTube’s Rumored Entry Into Music Streaming

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Aria Systems CEO Tom Dibble today cited Netflix’s recent record-breaking earnings report as well as YouTube’s rumored jump into the music subscription service business as further proof that retailers adopting recurring revenue models are profiting from a shift in how their customers prefer to purchase goods and services. The driving factor in digital media, Dibble notes, is mobile device ubiquity.

The music and rental movie industries were among the first to pioneer the use of subscription sales as their base retail model, and they continue to set the standard for how a recurring revenue model best works,

The CEO of recurring revenue expert Aria Systems noted today that the rapid spread of recurring revenue models continues unabated with announcements from Netflix and YouTube. In its most recent earnings announcement, Netflix, the world’s leading Internet television network, reported that net income quadrupled while the number of worldwide subscribers jumped above 40 million (as reported on October 21st by USA Today). In addition, the news media is reporting that YouTube will soon launch a $10 monthly subscription music service to compete with Spotify and other streaming sources (as reported by Wired on October 24th).

“The music and rental movie industries were among the first to pioneer the use of subscription sales as their base retail model, and they continue to set the standard for how a recurring revenue model best works,” said Aria Systems’ CEO Tom Dibble.

Meanwhile, YouTube’s rumored service will offer commercial-free music to those who sign up on a monthly basis. The much talked-about new service will target the mobile market, which has become of critical importance as more and more young listeners turn to their smart phones or tablets for music.

“The combination of mobile device ubiquity, and access to higher quality connectivity, is displacing localized content on iPods and portable DVD players,” continued Dibble. “ This trend is allowing for many innovative new recurring revenue models, and Youtube, Spotify and Netflix are shining examples.”

Businesses with large customer bases are becoming increasingly aware that, to achieve and maintain customer satisfaction and retention, they must give customers as much choice as possible, be as flexible as possible, and have a system that enables that flexibility.

Aria Systems facilitates this increase in customer choice with its solution for managing recurring revenue. Whether the business model is single-transaction, usage- or subscription-based, or a hybrid of any of these models, Aria Systems can help ensure that companies can offer each and every market segment the optimal pricing model without the limitations imposed by legacy billing or revenue management systems.

For more information about how adding a recurring revenue option to your business can generate new income streams and improve customer lifetime value, download the recent ePaper “The Right Recurring Revenue Model for Success.” The paper examines the latest trends and details of the basic recurring revenue models, and highlights a variety of pricing “tactics,” including “freemium,” pre-paid, post-paid, tiered, trials, promotions and unlimited usage that can be used to optimize revenue streams.

About Aria Systems
Aria Systems delivers the full power of subscription commerce to transform business by creating new opportunities, improving customer relationships, and providing more revenue predictability. The Aria Subscription Billing and Management Platform is used by brand name companies such as Pitney Bowes, AAA NCNU, Experian, Red Hat, Ingersoll Rand, EMC, VMware, and HootSuite to evolve their subscription business while delivering outstanding customer experiences. Visit http://www.ariasystems.com or call 1.877.755.2370.

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Marie Martin
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