This week on Five on Friday we delve into transformative trends in the DTC landscape, local news, and streaming media. Explore how subscription models, press releases, and innovative engagement are reshaping industries, fostering consumer loyalty, and enhancing community connections. 

75% of DTC Brands to Embrace Subscription Model by 2023 Amid Growth and Challenges

Our friends at Retail Dive are reporting on PipeCandy and Rodeo research that by 2023, up to 75% of direct-to-consumer (DTC) brands will offer subscription-based services. This growth is driven by the changing consumer preferences and the ease of setting up subscription models through platforms like Shopify, ReCharge, or Rodeo. Even so, despite the connection of subscription boxes with new customers, there’s a growing concern about the long-term viability of this model, evidenced by layoffs and closures among notable players like Birchbox, Trunk Club, and Stitch Fix, especially in light of economic uncertainties and business challenges. Read the full Industry Dive reporting here:

Press Releases: A Lifeline for Local News in Revenue and Community Engagement

Neiman Labs has an interesting view on press releases and local news: In the face of declining local news, press releases have emerged as a solution for revenue, editorial content, and community engagement. They allow local media to tap into the trifecta of reputational, informational, and promotional content, offering a sustainable revenue stream through paid content. By integrating press releases, local news can bolster its relevance and financial stability while fostering deeper connections with the local business community. This approach not only aids in surviving the advertising downturn but also revitalizes local journalism’s role in the community. Read the full story here.

Engagement is King: The Future of Streaming Media Profits

The future of media and entertainment lies in deepening viewer engagement, according to Streaming Media. As subscription costs reach their limit, companies are innovating with interactive features like content gamification and live commerce to boost revenue and viewer involvement. These strategies, from trivia overlays to shoppable programming, aim to extend watch times and increase purchases. By focusing on personalized, interactive experiences, media companies can enhance subscriber retention, foster brand loyalty, and build vibrant communities, turning casual viewers into brand champions and driving significant business growth. Read the full story here.

Streaming’s Silver Lining: Profitability on the Horizon

Despite a generally unprofitable 2023, the streaming industry is expected to achieve consistent profitability within the next 18 months, as forecasted by Ampere Analysis and reported by The Wrap. Key players like Disney, Warner Bros Discovery, Paramount, and NBCUniversal are set to reach this milestone through strategic cost reductions and an increased focus on advertising. By 2028, these studios could earn $1-$2 billion annually from streaming alone, with additional growth potential from geographical expansion​​.

The anticipated profitability shift is seen as a result of various factors including a reassessment of investment returns in streaming. This transition is likely to usher in a new era of flexibility, experimentation, and an increase in free ad-supported streaming services, signifying a significant evolution in the entertainment and streaming sectors. Read the full story here.

Subscription Giants Bet on Audiobooks to Secure Consumer Loyalty Amid Rising Competition

PMNTS has an interesting article highlighting the strategic shift toward incorporating audiobooks into subscription offerings as a means to differentiate services, enhance customer value, and navigate the competitive and cost-sensitive landscape of subscription commerce. 

Key players are using audiobooks to drive consumer loyalty. Spotify’s recent addition of audiobooks aims to keep subscribers engaged with hours of content, while Amazon’s Audible offers discounts and exclusive benefits to Prime members. As consumers consider cutting subscriptions to save money, these merchants see audiobooks as a way to maintain and increase subscriber engagement, making them a crucial element in the battle for customer loyalty. Read the full article here.