Last week Logitech launched a premium subscription for its security video camera, Circle. The new subscription service, Circle Safe, is a cloud video storage plan that lets users keep and replay video footage beyond the system default of 24 hours. With the premium subscription, Circle Safe subscribers can keep up to 31 days of video footage and custom day briefs in their cloud account.

“Whether you’re away on travel and want to check in on (your) home during the week, or you’re hosting a family BBQ on Saturday between 1-4 p.m., Circle Safe Day Briefs let you select specific time frames of events, making it easier to download and share unique moments with family and friends,” says Logitech.

Users enroll in the subscription plan through the Logi Circle app or the Logitech web app. The subscription is priced at $9.99 a month or $99.99 a year, following a 31-day free trial. Every Logitech Circle camera, available for $199.99 each, comes with the free trial. If a subscription plan is not selected by the end of the free trial, the 31 days of storage will “disappear.” The premium subscription is optional.

New users who don’t upgrade to the subscription service will still have access to the most recent 24-hour period (starting at midnight) of footage per camera for free. Like many subscriptions, the Circle Safe subscription automatically renews each month. Users have to manually select “no subscription” within the app to cancel their subscription.

Circle Safe is currently available in the United States, Canada, European countries using the Euro, Switzerland, United Kingdom, Denmark, Norway, Sweden, Hungary, Czech Republic, Poland, New Zealand, Australia and Japan.

Circle Safe is not Logitech’s first foray into the subscription economy. Prior to launching Circle Safe, Logitech launched Alert Web and Mobile Commander. Following a free seven-day trial, a one-year subscription costs $79.99 and it allows subscribers to view live and recorded video, adjust alert settings, control multiple sites and more while away from home.

Insider Take:

In Logitech’s July 28 financial results for the first quarter of fiscal year 2017, the company reported an increase in retail sales of 13 percent, year-over-year. However, the financials – figures or commentary – do not mention or show subscription revenue. That leads us to believe that it is either being reported under the appropriate product category, or the first subscription service – Alert Web and Mobile Commander – is too new to warrant mention in the quarterly financial reports.

Regardless, for a company that relies heavily on product sales, adding a subscription service component with recurring revenue makes sense. This creates some customer reliance and, therefore, loyalty, for its Circle security camera which can add another revenue stream to Logitech’s bottom line. In addition to creating this product, the company’s marketing of the Circle camera is smart. It shows how the tool can be used for home security purposes, but also for social sharing. This creates the perception of added value.

Depending on the success of the Circle Safe plan, we anticipate that Logitech will try to package other services in a similar way, boosting their subscription revenue as well as future product sales for upgrades.