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Basically only two types of (online-only) consumer subscription businesses are making significant amounts (7-8 figures) of revenue: content businesses (hulu, sp
by ig1 14y ago
Basically only two types of (online-only) consumer subscription businesses are making significant amounts (7-8 figures) of revenue: content businesses (hulu, spotify, ancestry.com, etc.) and network businesses (eharmony, match.com, xbox live).
There are some productivity apps (DropBox, Evernote) which generate subscription revenue from consumer, but these figures are likely to be minuscule compared to revenue from business users.
- akumpf 14y agoAfter seeing all of the responses come back with big company names and a somewhat dismal outlook on small/lean companies and finding a path toward sustainable revenue not from ads, I got to thinking about why that is... The biggest hurdles seem to be around critical mass (many things only get interesting when you have a certain amount of users/content), lock-in (users' inability to easily move between new services), and silos (apps only working with themselves, or at best, other apps on a single domain). More thoughts here: http://blog.chaoscollective.org/post/32205575097/where-the-internet-went-wrong-and-how-we-can-fix-it http://blog.chaoscollective.org/post/32205575097/where-the-i...
- ig1 14y agoMy response isn't to say you can't make profitable consumer subscription businesses in other areas, just that if you're looking to make a large VC funded business then consumer subscriptions is a very hard space. There are definitely small but profitable consumer saas businesses. For example fitness/weight loss apps, 23andme (although no longer), sleep management apps, pinboard, etc.