Chewy Takes a Bite Out of the Pet Market

News

Discovery Launches Streaming Service

Discovery became the latest legacy media company to enter the crowded streaming space. The name of the service is… you guessed it, Discovery+. Discovery’s largest brands HGTV, TLC, Food Network, and, of course, Discovery. The service will start with an ad-supported tier at $4.99 and an ad-free option at $6.99. Link.

Amazon and Chewy Fight for Pet Subscription Dollars

Businessweek published a fascinating profile of Chewy and its CEO, Sumit Singh. While it mainly focuses on the company’s evolution and COVID bump, it has some interesting tidbits about Chewy’s battle for subscribers. In the summer of 2018, Amazon introduced a 40% discount for new customers subscribing to pet products (the ever-present “Subscribe & Save” option on Amazon). That significantly undercut Chewy’s 20% discount which caused some angst within the company. Eventually, Chewy increased the discount to 30% but decided not to match Amazon. Given that today almost 70% of Chewy’s sales are subscription-based and subscription as a % of overall sales has been growing, it seems like the company made the right decision not to compete with Amazon on price. Link.

Warner Bros. Will Release Movies on HBO Max

In another blow to theaters, Warner Bros. announced that next year’s slate will be released in theaters and on HBO Max at the same time. COVID will likely keep moviegoers at home for most of next year, so this is a smart move to drive them to subscribe to HBO Max. Link.

Fortnite Finally Gets a Subscription

After months of rumors, Fortnite launched Fortnite Crew. For $11.99 a month, subscribers get in-game currency and exclusive cosmetics. Link.

____, But Make it a Subscription

Running Shoes

On, a company beloved by runners, introduced a $29.99/month subscription for its new 100% recyclable shoes. Link.

Tripadvisor

The service will offer discounts and perks for travel. It’s called… you guessed it, Tripadvisor Plus. Link.

Tires

Bridgestone is piloting a subscription program that includes tire maintenance and roadside assistance. Move our AAA. Link.

Baby Food

Gerber just launched monthly subscription boxes for baby food. Link.

Get That Money, Honey

Strava Raises $110M

The fitness tracking app that’s popular with runners and cyclists raised a Series F round. The company also reported over 70 million users. Link.

Duolingo’s Valuation Jumps

The language learning app has benefited from the edtech COVID-bump as more people look for education options at home. The company raised $35M at a $2.4B valuation, up from $1.5B a year ago. Link. 

Yubo Raises $47.5M

The social media app that relies on subscriptions and in-app purchases (instead of advertising) raised a Series C round. Link.

Superpeer Adds More Seed Money

Video mentoring startup Superpeer raised an additional $8M in seed funding, bringing its total seed to $10M. The company enables experts to charge for 1-on-1 sessions or build subscription group sessions around their expertise. Link.

Wellory Raises $3M in Seed

The startup aims to connect subscribers with nutritionists through their app for $60 a month. Link.

Surfline Raises $30M

TCG invested in the 35-year old surf forecasting company. For $9.99 a month, subscribers get surf and weather forecasts, original content, and perks like discounts. Link.