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The real issue with subscriptions is that it makes it hard/impossible to demonstrate revenue growth from a static userbase. It's fine for steady state / going
by ethbr0 3y ago
The real issue with subscriptions is that it makes it hard/impossible to demonstrate revenue growth from a static userbase.
It's fine for steady state / going concern financing.
But no public or pre-IPO company wants to look like that.
Advertising and engineered products allow you to create new revenue streams from your existing userbase, and because your customer isn't your users (B2B) price increases can be invisible.
- kec 3y agoThat would have been relatively easy to spin if it happened right before IPO though “Look at the last quarter(s) growth in premium subscription fees and MRR!”