Subscription Services Growing in the TV Sector

Over-the-Top (OTT) video which is better known by many as streaming video, is growing in popularity today. From Netflix to Hulu and even brands launching more personalized services like Disney +, there are so many reasons why this market continues to explode today.

Recent predictions from ABI Research show that subscription services and advertising will contribute to an increase in revenues for OTT video and growing it to over $200B by 2024.

In addition to the new brand TV services, there is also an aggressive push for more affordable pricing and package offerings that are fueling the uptick in this market. Even beyond the U.S., subscription video on demand is soaring.

In markets such as the Asia Pacific, the report found that services from iQIYI/Baidu, Tencent, Youku, and others are helping to make subscription TV services delivered over an Internet connection and part of a pay-for plan so popular.

With the internet and mobile technologies also advancing, this will only continue to bolster the market as well. 5G networks and next-gen OTT services offer greater speeds and security while improving latency and capacity to stream this type of content.

“Cord-cutting is often regarded as a consequence of expanding OTT consumption, but the market dynamics are more complex, particularly when one considers how the pay-TV industry has embraced OTT as a complement and value-additive, rather than strict competition. Over time, we expect the traditional pay-TV offer to continue to evolve and become indistinguishable from a pure OTT package of services,” said Michael Inouye, Principal Analyst at ABI Research.

“Increasingly, we’re seeing more solutions and conversations about bringing content and services together. This includes pay-TV and OTT bundles and extends to cross-platform advertising, analytics, and customer/service management. Ultimately it makes the market more accessible to a wider range of companies and expands the potential video touchpoints, particularly as new technologies like 5G, smart home, and Augmented/Virtual Reality play larger roles.”

Give Members Control with a Secure Subscriber Portal!

Subscription services give customers a convenient way to receive products they like without having to make individual purchases and transactions. They can simply sign up for a service, enter their payment and delivery information, then sit back and receive regular deliveries.

Sometimes customers need to update their billing or delivery information or want to change their subscription plans. Calling customer service can be a hassle, especially if members have to wait on hold. In today’s hectic world, many people simply don’t have the time or patience for that. They want to be able to make changes quickly on their own.

How Subscription DNA’s Secure Subscriber Portal Works

Subscription DNA offers a Secure Subscriber Portal that lets members manage their own accounts so they can make changes to the subscriptions they have chosen and update their payment methods and other information. Users can also view their transaction histories if they have questions about past orders.

If you have more advanced needs, we offer a web services API that you can use to develop your own solution. You will also be able to push and pull subscription data into your application as necessary. Our PHP Sample code can make it easy for you to quickly create a functional working model.

How Our Secure Subscriber Portal Can Benefit Your Business

In addition to providing convenience for members, our Secure Subscriber Portal can keep your company’s costs down. Instead of employing a large, full-time customer service staff, you will be able to have a leaner team and encourage members to resolve issues themselves online.

The money you save on salaries and benefits can be used to grow your business. The savings can also be passed on to members in the form of competitive prices. Customers who can get a bargain from your subscription service will be likely to choose it over others, which will help you grow your market share and improve your bottom line.

Make Things Easy for You and Your Customers

Consumers value convenience, and that is particularly true of customers who sign up for subscription services. They enjoy the ability to receive products they enjoy on a regular basis, without having to invest a lot of time making decisions and completing transactions.

Subscription DNA makes it simple for businesses to manage subscriptions by automating recurring payments. With our Secure Subscriber Portal, members can view and update their information easily at any time. That can create a positive experience for customers while keeping your company’s costs under control. Contact Subscription DNA today to learn more.

Understanding Subscription Billing and Cancellation Laws

Many businesses allow customers to sign up for subscriptions and to have their credit or debit cards automatically billed each month. Consumers often appreciate the convenience and simplicity of these programs, but problems can arise if companies don’t clearly disclose the terms upfront or fail to explain how customers can cancel their subscriptions.

How Some Companies Have Exploited Consumers

While most businesses that use a recurring billing model operate ethically, some have taken advantage of consumers. In some cases, companies didn’t clearly explain the terms of their billing agreements or it made it difficult for consumers to opt-out or cancel memberships. In other instances, businesses offered customers a free or low-cost trial to give them an opportunity to try the company’s product or service before committing to a membership, but then the companies automatically billed customers when the trial memberships ended without explaining that to customers when they signed up.

Legal Changes to Protect Consumers

Those sorts of practices prompted class action lawsuits and changes to both federal and state laws to help customers make informed decisions and avoid being confused, deceived, and exploited. The Federal Restore Online Shoppers’ Confidence Act (ROSCA) prohibits businesses from making recurring charges simply because a customer didn’t opt out; a customer must explicitly opt-in. The terms of an agreement must be explained before a customer provides billing information, and a customer must be told how to cancel recurring charges.

Several states have passed their own laws that clearly explain what information about subscriptions must be disclosed to consumers, as well as when and how it must be disclosed. During the membership sign-up process, a business must prominently and conspicuously display a notice that explains the terms of the agreement in a way that is easy to understand. Some state laws require companies to make it easy for consumers to cancel trial memberships, while others require consumers to opt-in after a free trial ends before a company can bill a credit or debit card.

Get Professional Help Running a Subscription Service

Subscription billing is convenient for both businesses and consumers, but unfortunately, some companies have used unscrupulous practices to take advantage of customers, which led to a series of laws designed to protect consumers. If you want to use subscription billing, it’s important to understand and follow all applicable laws. Subscription DNA stays on top of legal changes and can help your company process automatic payments and comply with state and federal rules. Contact us today to learn more. 

Subscription Services Continue Upward Movement

For most consumers today, subscription services are quickly becoming the norm. Even for those who aren’t looking for monthly curated boxes, services like Amazon Prime, Spotify, and even InstaCart have made dedicating a monthly subscription fee to have convenience more of a norm than ever before.

One new report uncovered that the subscription economy has moved beyond just products and is also playing a key role in businesses. Here, access to services and digital tools are making it easier to increase productivity and for businesses of all sizes to compete in today’s landscape.

Still, the consumer side is also looking bright for subscription services. A survey conducted by Clutch uncovered that online shoppers today are taking advantage of subscription boxes from top brands with more than half of online shoppers surveyed for their research (54%) saying they already subscribe to a subscription box service. Benefits including a desire for convenience to new, fresh experiences are just some of the reasons why the subscription culture is thriving.

The top 3 subscription services for consumers according to their survey are:

  • Dollar Shave Club
  • Ipsy
  • Blue Apron

These companies ranked highly in terms of additional benefits offered to a consumer outside of just providing a monthly box of goodies. Things like regular replenishment, access to extra perks for being a subscription customer and curation benefits of new items to try – all ranked as the top reasons for their choice.

If you’re a business looking to get in on the subscription economy, trust Subscription DNA to help you save time, money and make the transition an easy one. Our enterprise cloud billing and membership management software means you can automate the recurring billing process and gain access to administrative tools you need to manage your customers.

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Cloud Billing to Continue Steady Growth in 2023

The cloud billing market is increasing in popularity today for businesses across the globe. In addition to benefits such as improved security and mobility, users are using the services to meet compliance requirements and have access to modern business tools not offered with traditional billing software. 

According to the latest research findings, the cloud billing market is expected to reach  $23100 million USD by the end of 2023. This represents a CAGR of 23.9% from 2017. 

We won’t go into too much depth about how businesses can easily cut costs and simplify processes with cloud billing since we cover it in- depth in most of our blog posts, but we wanted to specifically cover the key features offered from Subscription DNA that provide a competitive advantage for businesses looking to make the move to the cloud. 

Our Subscription Cloud Billing Platform is designed specifically for the unique needs of subscription-based businesses. 

We understand that many of these are new start-up and small or growing businesses so we offer different package options to meet those needs. Factors including the number of subscribers, how much the subscription costs and other transaction agreements are used to ensure you’re getting the best cost for services. 

The great benefit of the cloud of course is that as you grow, your billing services can too.

We offer so much more than just a platform to process billing. You also get automation tools for sign-up, subscribing and expiring users of your services, you can set-up recurring billing, and have secure token payment options. 

You’ll also gain access to our reporting tools to quickly mine and analyze data, send out email auto responses, and more.

Want to learn more? We’d be happy to chat with you about all the benefits cloud billing can bring to your business model. Give us a call today!