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In a recent conference keynote, Microsoft COO Kevin Turner said the following:

We’ve got to monetize [Windows] differently. And there are services involved. There are additional opportunities for us to bring additional services to the product and do it in a creative way. And through the course of the summer and spring we’ll be announcing what that business model looks like. At the same time it’s wonderful to see these nine-inch and below devices explode, because that was an area, candidly, I was blocked out and I had no share of what was getting built. So it’s a very fascinating transition for us. And finding new ways to monetize the lifetime of that customer on those devices, again, I would tell you we’re learning, we’re growing, and we’re smarter and wiser every day.

The key language is “finding new ways to monetize the lifetime of that customer,” which is another way of saying that they’re shifting from a product-centric view to a customer-centric one. It doesn’t have to be Windows per se necessarily.

Many have interpreted that to mean the base OS might be free, and that Microsoft will earn via subscription or freemium. While the Redmond company will likely continue to charge enterprises and computer manufacturers, Windows and all its updates should absolutely be free to consumers. It probably will.

Although it may not look like it, Microsoft has actually been dealing with monetization questions for a long time. Back when Windows was a monopoly, it was difficult for Microsoft to add features to Windows without incurring anti-monopoly wrath. Security was one such example – the likes of Norton and McAfee lobbied hard behind the scenes to keep built-in security out of Windows.

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A few weeks ago, Satya Nadella called Office 365 the most strategic API for Microsoft. This was echoed by Bill Gates, who in an interview said that getting Office to the next level is a major strategic imperative. They weren’t kidding.

Microsoft made two game changing announcements recently for Office 365:

  1. Office 365 as a platform for third party developers
  2. Unlimited OneDrive storage with every Office 365 subscription

Opening up Office 365 can only add value to consumers and simultaneously keep Microsoft relevant with developers. This is an urgent priority in a mobile world where Windows is a minority; Office 365 on the other hand cuts across all operating systems and devices.

Unlimited OneDrive storage makes Office 365 more attractive than ever; it addresses the competition in both cloud storage and free office programs.

For Microsoft, keeping Office a productivity standard is the next best thing to a Windows monopoly.

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You might have seen the $8 for 8 weeks trial for the digital version of the Wall Street Journal. If you’re tempted, thinking, I can always just cancel at the end of the 8 weeks: don’t.

That’s what I thought, and why I took the trial and put down my credit card information. The 8 weeks came by quickly and saw on my credit card statement that I was billed the subsequent monthly amount. Even though I read maybe two articles on the WSJ during that time span…no problem. Went to the website, tried to find a cancellation button, couldn’t, and fired off an email with all my details to cancel.

Two months of busy life go by. Nothing from the WSJ. I check my credit card statement again and…WTF, saw two more monthly charges from the good journal. Now I really go through the site, trying to find out how to cancel the subscription. Buried in the FAQs section I finally see my answer:

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Speaking of videogames, Electronic Arts announced an interesting offer in EA Access: for $5 a month or $30 a year, Xbox One owners can play all the games in EA’s so-called Vault, which currently consists of FIFA 14, Madden NFL 25, Peggle 2 and Battlefield 4; with presumably more in the pipeline.

You can also get 10% off EA titles purchased through the Xbox One game store.  If you’re planning on buying even one EA game, it’s worth getting EA Access for the 10%.  Essentially, EA Access comes free for one month with every >$50 game purchase.

This appears to be a modified approach of in-app purchases on mobile; i.e. lower barriers to adoption, create stickiness once adopted and monetize later via downloadable content.  If successful, it might even create network effects.

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