Homepage

For companies like Amazon auto-enrolment is a no brainer, according to research analyst Claire Holubowskyj at Enders Analysis.

She says companies can grow their customer base either by investing continuously to improve their products or by subscription which is an "easier route."

"The customer tries the product once and then is locked in, giving the company a relatively easy revenue stream at no extra cost".

Ms Holubowskyj says that there's been a shift in the consumer mindset in recent years which means we are now used to paying for products and services on a monthly basis, "It's just the done thing now and actually for customers there is a lot of benefit particularly with technology software where updates are just bedded in with the price now."

“Spotify just hasn’t succeeded in leveraging the consumption of podcasts,” says Alice Enders at Enders Analysis. “It hasn’t had a meaningful impact – in fact, it’s had a highly detrimental impact on their bottom line.”

Spotify insists podcasts have helped to sustain revenues on its ad-supported tier. Yet advertising made up just 11pc of the company’s overall revenue in the first quarter. Losses at the start of the year narrowed from the previous three months, but still stood at a hefty €156m.



As Enders puts it, the podcast push has “spectacularly failed to deliver the anticipated financial rewards to shareholders”.

“Podcasts don’t really travel that well, ” says Enders. “It’s a cultural product. Joe Rogan is not a big star here, but he’s a big star in the US. He had Elon Musk on and they were smoking dope… it’s the kind of thing that wouldn’t really land a lot of punches here.”

Media analyst Claire Enders said talks were “very complicated at present”, adding that, as each organisation takes its own approach, a single commercial arrangement for media groups was unlikely and could be counter productive. 

Enders added: “Chatbots won’t be credible tools if they are literally trained primarily on the sewers of misogyny and racism that make up most of open, accessible text.”

For companies with progressive values, the context of where their advertisements appear matters greatly, and this context includes other advertisers in the space, according to Jamie MacEwan, the senior media analyst at Enders Analysis.

“I could see this being a sell to advertisers with high standards for context who prioritize publications that walk the walk and build a strong connection with their readers based on shared values,” MacEwan said.