Tornado in York Nebraska on June 20, 2011.
The weather is free, right? So why would anyone pay for a weather service subion?
40 billion times a day, over 2.5 billion devices ping IBM servers for weather updates. A year ago, almost all of these updates were paid for by and partnership agreements.
Now, however, that is changing.
And the change parallels the massive boom in the subion economy.
Today, nearly one million people who previously received their weather updates for free from The Weather Company are paying IBM $ 30 / year not to receive ads, premium radar forecasts, more granular weather forecasts and more 'other data. The Weather Company launched its subion service in the face of the Covid-19 pandemic and has now grown it to over 900,000 paid subscribers. Growth is particularly rapid during major weather emergencies: Hurricane Marco and Hurricane Laura accounted for 1% of new TWCo subions in just five days last summer.
"Our customers ... choose to underwrite our business in a different way," said Sheri Bachstein, vice president and global director of IBM Watson Advertising and Weather. "You have a user who doesn't want to pay a subion fee, then they subscribe to it seeing s ... and then you have the consumers who want that subion experience: they'd rather pay for a subion service than see s. ”
More others advantages, of course.
Both for customers ... and for companies like The Weather Company that are increasing subions.
Over the past decade, the subion economy has grown five to eight times faster than traditional businesses, according to a by Zuora. While the S&P 500 Selling Index is up about 130%, subion-based companies are up nearly 450%. It's Netflix, of course, and Disney +, but it's also about cleaning services, transportation, games, clothing, meal kits and more. According to some, four in five adults currently participate in the subion economy: they regularly receive goods and services for a regular fee.
Growth of the 'subion savings, according to Zuora Zuora
Given the growth of the model - it is not surprising that most of the applications, services and products companies that looking for ways to grow explore subions.
In particular, activities based on revenue.
IBM's weather company delivers weather news through owned channels like The Weather Channel app to 400 million people every month. Add licensing partnerships with some of the biggest companies on the planet that provide weather information to their users, and those 400 million balloons to over 2.5 billion devices that request information 40 billion times a day at the Weather Company.
Not all will become subscribers, of course.
But some will, and subscribers are more valuable than users who view s, dit Bachstein.
The Weather Channel app, by The Weather Company John Koetsier
Only 10 % of those 400 million users of owned channels that become subscribers would boost revenues by $ 1.6 billion. It's hardware, even for a company the size of IBM ($ 74 billion in 2020 revenue). Extend the franchise to a few of the billions more people who access IBM weather data in other people's apps and services, and you might be able to put a multiple of 3-5 times on that 1, $ 6 billion.
This revenue potential has already enabled The Weather Company to grow 3 times a year in 2020, a company representative told me.
The growth ofThe subion economy is good news for businesses that depend on ad revenue, as targeting people to people becomes more difficult. Monitoring people's activity and interests is becoming more and more difficult because Apple strengthens privacy regulations on iPhones and third-party cookies disappear. Advertisers will continue to promote and publishers will continue to earnmoney, but the amount of disposable income could drop. On their own, Apple's privacy changes could cost Facebook and Google billions of dollars next year.
So publishers have to offset the revenue somewhere.
Enter the subions.
Which by all accounts are eye-catching g more and more people. 78% of adults in countries like US, UK, Germany, Japan, China and France in the subion economy. And three-quarters of us think it will continue to grow.
Even among people who are anti-subion (like I was before Netflix, Amazon Prime, Disney +, and Apple TV +, and I'm not sure what else) .
"A member of my own team whois in the product said: "I'm not going to subscribe to this premium service until I have to " "Bachstein told me." A big storm has come ... and it's became a subscriber because he wanted this detailed information that the map had ... he really wanted to understand the movement of the storm. So I hung it up. It took me about six months, but we got it. 'finally hooked up. "
Not everyone will go, of course. And that's good.
But more and more are like CEOs of Binance, a major cryptocurrency exchange.
"I don't have a car," Binance CEO Changpeng Zhao Bloomberg said recently. "I don't have a home. problem with cars, houses, is that I don't think they are liquid. As soon as you buy them, you can't trade them that easily ... I actually prefer not to own anything.
Saving subions? Duration of subion, apparently.
I don 't yinot: I prefer to own a few items that cannot be removed. A house, for one person, and probably a car too, although that could change. But it is clear that at least some others have a very different view of models of ownership and access.
For the weather: I don't know. Maybe when I have to leave the home office in a few months and experience it more.