Subscription ecommerce companies are media companies. This is the parallel I see between the two.
|Aggregate Audiences by:||writing content and curating products for a target demographic|
|Serve advertisers by:||allowing vendors to reach a target demographic with promotions for products|
|Entice consumers to:||pay a subscription for access to product/content curation|
|Core logistical competency of the business:||manage printing logistics||manage product shipping logistics|
I think the industry will shake out the same way: consolidation of subscription sites will follow the massive growth of the sector. A new Conde Nast (or a reinvented Hearst) will emerge in the next five years by rolling up many subscription ecommerce companies targeting different demographics.
Interestingly enough, churn rates for both industries are about the same – 15% annual churn for the best in class: The New Yorker.