Ever since the paywall model for online journalism was introduced about five years ago, news consumers have spent just as much time figuring out how to avoid paying for content as they have paying for it. But what if you only had to shell out a measly quarter to read one article instead of paying an expensive monthly subscription fee? Quarter for your thoughts.
Advertising has had a long history of being much-maligned. Nobody likes ads, we just put up with them. We recognize that they prey on our insecurities but, by virtue of both their prominence and ubiquity, can’t escape them. Well, one company appears to agree that its public ads do belong to you, and are yours to take and re-use. They're on to something.
Snapchat wants to be like TV, and publishers need to adapt. That’s the message from the news that Snapchat no longer wants to share ad revenue with its Discover media partners. Instead, the company will pay licensing fees for the content and keep all the ad revenue — the approach TV networks take. These new terms will have a seismic impact on media companies that have dedicated significant resources to Discover. Well, that was snappy.
While much of Amazon’s sales volume is in diapers, blenders, and other unglamorous products, the e-commerce behemoth is also a fashion giant. Next year it’s expected to become the biggest apparel seller in the US. And yet high-end luxury labels aren’t biting. Jean-Jacques Guiony, CFO of LVMH, which owns Louis Vuitton and other luxury labels, told analysts this week that there is “no way” it would do business with Amazon. What is so unappealing about Amazon’s business model? Exclusivity vs inclusivity.
Hinge has officially switched from a balls-to-the-wall free hookup app model to a subscription-based service for the real relationship-seekers among us. Which means you’re gonna have to pay to escape the dark trenches of loneliness. The app’s new “members-only” model, launching today, will cost $7 a month and aims to put Hinge in the more serious class of capitalistic matchmaking ventures like Match.com and eHarmony. Swipe for a price.
The first real offer for Twitter came in 2007, when Yahoo tried to buy the nascent social network for a then-whopping $12 million. In 2008, on the eve of that year’s presidential election, Mark Zuckerberg upped the ante by offering a few hundred million for the company that he would later refer to as a “clown car that drove into a gold mine and fell in.” The plain truth about the struggling social-media company has become clear in its highly public, and theatrical, auction. There is no Plan B.
In an internet full of entertainment options, many of them already free, it’s tough to get people to open their wallets. On one end they’re paying for premium TV shows and movies with little complaint (Netflix, Hulu). On the other end, they’re paying for amateur content from amateur broadcasters voluntarily and willingly (Twitch), when even YouTube stars with huge followings are having a hard time getting their fans to pay for content (YouTube Red). What are users really paying for and what are low-earning services missing? Take my money.
Twitter's board met yesterday to discuss future options for the company, including its possible sale. It’s a critical moment for the company right now – revenue is tight and options to save money include more layoffs, or selling their ad tech. Waste time wisely.
Lego is now so popular that the Danish company, struggling to keep up with demand, decided this year to discourage US consumers from buying any more of its celebrated building blogs. The world’s most profitable toymaker reported plateauing North America sales, for the first half of 2016, but Lego chief financial officer John Goodwin said that was all part of a wider strategy. Let go of our Legos.
Snapchat has been developing its ad business with innovative mobile formats such as sponsored animated lenses. It has been working with top brands to design ads that fit the platform – and clearly they are doing something right, because Snapchat will collect $367 million in ad revenue in 2016 and grow that figure 155% next year to $935.5 billion. Oh Snap.