Friday Five: The Latest in Media & Subscription Trends
Kickstart your weekend with the latest edition of Friday Five! In this issue, we dive into Simon & Schuster announcing a new board of directors, Amazon testing a grocery subscription, Spotify restructuring and layoffs, the future of media being subscription-based, and X now licensed for payment processing.
Simon & Schuster's New Board of Directors
Simon & Schuster, recently acquired by a private equity firm KKR for $1.62 billion, has announced a new board of directors with expertise in traditional publishing, audiobooks, and social media platforms like TikTok. The goal is to position Simon & Schuster as a premier publisher while exploring a variety of directions for growth including distribution, international publishing, and audio publishing. Read More on New York Times.
Amazon Testing a Grocery Subscription
Amazon is testing a new subscription service that would give Prime members unlimited grocery delivery on orders above $35. The trial will be offered in three cities: Denver, Colorado; Sacramento, California; and Columbus, Ohio. The new service will cost $9.99 per month, in addition to the regular Prime membership fee. Read More on PYMNTS.
Spotify Restructuring and Layoffs
Spotify’s CFO, Paul Vogel, is stepping down from the company by the end of March 2024 amid a series of layoffs affecting 17% of its workforce. This is part of Spotify’s efforts to streamline operations and achieve profitability by 2024. CEO Daniel Ek highlights the need for a CFO with different experiences to navigate the company’s next phase. Read More on Subscription Insider.
Future of Media is Subscription-Based
The media industry is shifting towards subscription-based revenue models, with major players like The New York Times, Meta, Twitter, and Snapchat leading the way. The move is driven by a focus on reliable revenue streams, enhanced privacy and security, and an emphasis on personalized user experiences. Read More on Forbes.
X is Now Licensed for Payment Processing
Elon Musk is planning to make X, formerly Twitter, become an “everything app” with its own payment system. Musk described X as a place where users would be able to send and receive money on the platform, extract funds from bank accounts, and offer a high-yield money market that would encourage users to keep cash in their accounts. Read More on TechCrunch.