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Are subscription services the future of fintech?

Subscription services are on the rise. During the pandemic, Americans have been spending more time at home and more money on the digital products that make navigating our new normal easier.

More than ever, Americans’ lives are aided by companies like Netflix, Instacart and, of course, Amazon, which reported record-setting earnings from its 2020 Prime Day savings event.

A recent survey even found that spending on subscription services had more than tripled since March, with one in three respondents saying they’d purchased a new online subscription while quarantining.

Now, a new concern lingers: Is the market getting oversaturated? The question doesn’t just apply to streaming services and food delivery companies — it’s an issue financial technology businesses can’t afford to ignore.

As subscriptions become an increasingly alluring business model, fintechs will be forced to consider whether this proven strategy is worth the risk.

Fintechs should take note of subscription services

In the CompareCards survey, two-thirds of respondents said they purchased a new streaming service mainly for entertainment. Still, that doesn’t mean there isn’t room for fintechs to carve out their own space.

Bradley Leimer, co-founder of the financial consulting firm Unconventional Ventures, said he’s certainly seen more fintechs exploring subscription models. As Leimer explained, the financial services industry may have not fully embraced the idea, but it’s “starting to take notice.” Leimer, who has more than 25 years of experience in the industry, believes fintechs can learn a lot from subscription services — provided they’re willing to look in the right place.

One major lesson? Transparency. Subscription services give companies an opportunity to be upfront about their fees, as well as their benefits.

“When we talk about subscriptions, the more clear and more transparent we are, the better,” Leimer said.

Acorns is an easy case study. The microinvesting app offers three subscription levels — lite, personal and family — each with a clearly explained list of features. For what it’s worth, the company added more than 2 million users between March 2019 and March 2020, according to Forbes.

Leimer said fintechs should also take note of the way subscription services collaborate. For example, he pointed out how Amazon users can add an HBO subscription to their Prime Video account, essentially “bundling” two subscriptions into one. Fintechs, Leimer said, could stand to take a page out of that playbook.

“There are a lot of ways to sort of skin that cat — for a fintech company to generate income and for a customer to get value on top of that,” Leimer said.

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Hear how three startups are approaching quantum computing differently at TC Disrupt 2020

Quantum computing is at an interesting point. It’s at the cusp of being mature enough to solve real problems. But like in the early days of personal computers, there are lots of different companies trying different approaches to solving the fundamental physics problems that underly the technology, all while another set of startups is looking ahead and thinking about how to integrate these machines with classical computers — and how to write software for them.

At Disrupt 2020 on September 14-18, we will have a panel with D-Wave CEO Alan Baratz, Quantum Machines co-founder and CEO Itamar Sivan and IonQ president and CEO Peter Chapman. The leaders of these three companies are all approaching quantum computing from different angles, yet all with the same goal of making this novel technology mainstream.

D-Wave may just be the best-known quantum computing company thanks to an early start and smart marketing in its early days. Alan Baratz took over as CEO earlier this year after a few years as chief product officer and executive VP of R&D at the company. Under Baratz, D-Wave has continued to build out its technology — and especially its D-Wave quantum cloud service. Leap 2, the latest version of its efforts, launched earlier this year. D-Wave’s technology is also very different from that of many other efforts thanks to its focus on quantum annealing. That drew a lot of skepticism in its early days, but it’s now a proven technology and the company is now advancing both its hardware and software platform.

Like Baratz, IonQ’s Peter Chapman isn’t a founder either. Instead, he was the engineering director for Amazon Prime before joining IonQ in 2019. Under his leadership, the company raised a $55 million funding round in late 2019, which the company extended by another $7 million last month. He is also continuing IonQ’s bet on its trapped ion technology, which makes it relatively easy to create qubits and which, the company argues, allows it to focus its efforts on controlling them. This approach also has the advantage that IonQ’s machines are able to run at room temperature, while many of its competitors have to cool their machines to as close to zero Kelvin as possible, which is an engineering challenge in itself, especially as these companies aim to miniaturize their quantum processors.

Quantum Machines plays in a slightly different part of the ecosystem from D-Wave and IonQ. The company, which recently raised $17.5 million in a Series A round, is building a quantum orchestration platform that combines novel custom hardware for controlling quantum processors — because once quantum machines reach a bit more maturity, a standard PC won’t be fast enough to control them — with a matching software platform and its own QUA language for programming quantum algorithms. Quantum Machines is Itamar Sivan’s first startup, which he launched with his co-founders after getting his Ph.D. in condensed matter and material physics at the Weizmann Institute of Science.

Come to Disrupt 2020 and hear from these companies and others on September 14-18. Get a front-row seat with your Digital Pro Pass for just $245 or with a Digital Startup Alley Exhibitor Package for $445. Prices are increasing next week, so grab yours today to save up to $300.

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Amazon’s Prime Video app disappears from the App Store [Updated]

In what we understand was a “technical issue”, the Amazon Prime Video app disappeared from the Apple App Store, making it unavailable for new downloads or updates to users both on iOS and Apple TV. Twitter users began to tweet to Amazon for help about the problem on Friday morning, to which Amazon’s support channels have yet to reply.

[Update: we’ve learned the issue is technical in nature, but we have no further information as to the details of the problem. The app should be back shortly.]

[Update 2: Amazon has now offered a comment on the disappearance.

“Earlier today, there was a technical glitch that impacted the Prime Video app on iOS and tvOS devices,” an Amazon spokesperson said. “The issue has been resolved, and the Prime Video app is now once again available in the App Store.”

Earlier post continues below:

The app’s disappearance was earlier reported by AppleInsider, iMore and others.

The most likely reason for the app’s removal is a technical one — an issue with the update could have caused it to be temporarily pulled, perhaps.

What’s not likely is that Amazon Prime Video is gone for good.

The company just released an X-Ray upgrade to the app across platforms, including iOS, allowing users to get more information about what they’re streaming, including Amazon’s run of Thursday Night Football games.

Nor is it likely that Apple has for some reason booted out Prime Video, given the anti-competitive nature of such a move (Apple TV+ is soon to launch), at a time when the tech giants are under increased regulatory scrutiny.

Not just you – https://t.co/DTgGRZwsUc

— Jared DiPane (@jareddipane) October 4, 2019

Was ist da los? Amazon Prime Video wurde aus dem App Store entfernt? pic.twitter.com/w6urAq7X70

— Pino (@madphone) October 4, 2019

The amazon prime video app is gone from the App Store? 🤔 @PrimeVideo pic.twitter.com/wtiyIBCI3u

— Adrian (@emoflipsan) October 4, 2019

@PrimeVideo is it just me or is the Amazon Prime Video app gone from the Apple App Store??

— Gary Schafer (@GaryLSchafer) October 4, 2019

Does the Amazon Prime Video app not exist on the App Store anymore?

— Swapnanil Dhol (@SwapnanilDhol) October 4, 2019

Whaaat!!! Amazon Prime Video App removed pic.twitter.com/ayxtrGAHuz

— Jesús Cruz (@jesusmisanador) October 4, 2019

Amazon video is no longer in App Store @amazon @PrimeVideo pic.twitter.com/JuY3s9Ygs0

— Ahmad Najim Noori (@Ah_najeem_noori) October 4, 2019

The issue isn’t only impacting users in the U.S., nor is it limited to iPhone, as Apple TV is also affected.

According to data from app store intelligence firm Sensor Tower, the app was removed today in all regions except Australia, Guatemala, Hong Kong, Hungary, Israel, India, Kenya, Kuwait, Lithuania, Luxembourg, Madagascar and Saudi Arabia.

Amazon has not responded publicly to users asking for help.

TechCrunch has also reached out to Amazon for comment and will update when we hear back.

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Airbnb poaches Amazon’s Prime boss

 Airbnb is bringing on Greg Greeley, Amazon’s current VP of Prime & Delivery Experience, Airbnb CEO Brian Chesky wrote in a blog post today. His first day at Airbnb will be March 18. Read More

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Amazon Prime Wardrobe lets you try on and return clothes free

 Amazon’s latest perk for Prime members could make us more stylish by letting us buy everything that catches our eye and return what doesn’t fit. Today Amazon revealed Amazon Prime Wardrobe, which is currently in beta, but you can sign up to be notified when it launches. Read More

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Amazon launches “Family Vault,” a way for families to share Prime Photos’ free storage

prime-photos-banner One of the perks of Amazon Prime membership is free, unlimited photo storage via Prime Photos. Today, Amazon is extending that benefit to the family members of the main account holder, with the launch of a new Prime Photos feature called “Family Vault.” With Family Vault, an Amazon Prime member can invite up to five family members or friends to join their online account, in order… Read More

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Amazon Household Program Expands To Include Unlimited Photo Storage

amazon-photos-cloud Amazon Household, the program that allows adults living under the same roof to share their Amazon Prime benefits, including free shipping and access to Prime Video streaming, has been expanded today, to now include Prime Photos storage. That means that each account holder will receive unlimited photo storage in the cloud plus an additional 5 GB of storage for videos and other files. Until… Read More

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Amazon Prime Music Takes On Pandora With Addition Of “Prime Stations” On iOS

Prime Music Prime Music, Amazon’s free music streaming service for Prime members, has been upgraded on mobile today with a new feature that will see the service better competing with similar offerings like Pandora or iTunes Radio, for example. The company has now introduced “Prime Stations” for users of its iOS application, which are are ad-free streaming music stations that offer… Read More

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Amazon Prime Members’ Newest Benefit Is Free, Unlimited Photo Storage

Ad_PrimePhotos_1 Amazon Prime members are getting another benefit today, the company announced this morning: free, unlimited photo storage. In a new service called Prime Photos, paying subscribers of Amazon’s membership program will now be about to store photos in their original resolutions to Amazon Cloud Drive from any device, including iOS, Android, and Fire phones and tablets, as well as Mac and… Read More

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