Consumer Subscription Software 2023 – Enhancing Everyday Life.

Eric Crowley, Partner at GP Bullhound, commented: “The GP Bullhound team continues to be amazed at the companies and entrepreneurs building within the CSS ecosystem. The learnings and evolutions that have taken place over the last three years have been extremely exciting to watch. Companies have become experts at providing continuous value to consumers, and, in return, the consumers have expanded the type of services that they will subscribe to. GP Bullhound remains excited to help these companies reach for success.”

Market update

• App stores are the largest markets in human history, with the Apple App Store larger than c.450 of the Fortune 500 by revenue, and Apple and Google stores together driving sales for five billion consumers globally
• The fallout from Epic Games vs Apple spells advantages for developers, as Apple and Google reduce subscription fees, driving up the value of CSS applications
• The proliferation of non-traditional media channels and the growing number of OTT options has disrupted the sports viewing landscape forever, driving subscriptions for streaming platforms with premium sports content
• GP Bullhound’s CSS Index highlights past market turbulence but points towards stabilisation. M&A and private financing remain stable, with conversations increasing

CSS insights

• Consumer companies innovate on how to build or buy missing pieces of the “3C Ice Cream Cone” – Content, Commerce & Community
• The best founders do not overlook segmentation; unlocking value post-customer acquisition is key
• Leading applications make the churn of a consumer friction-free with the goal of re-acquiring them when their need returns
• Companies in fitness, mental health, education and prosumer explore adding B2B offerings to drive further revenue growth and reduce user churn
• Time is ripe for a CSS “category killer” in family planning, AI, youth sports, wealth management, and news
• A digital newsletter renaissance is underway as consumers are increasingly willing to pay for high-quality content
• Meteoric interest in AI means many CSS players have embraced the technology, but deployments will have to prove true value-add to keep consumers subscribing
• Traditional B2B tools are still the backbone of many CSS companies in managing key functions

Insights from company builders

• Joel Gratz, CEO, OpenSnow
• Matthew Fox, CEO, SpotGamma
• Vince Mayfield, CEO, TalkingParents
• Ben Spero, Managing Director, Spectrum Equity
• Helen Christakos, Partner, Allen & Overy
• Jessie Cai, Vice President, General Atlantic

Enquiries
For enquiries, please contact:
Eric Crowley, Partner, at eric.crowley@gpbullhound.com

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 14 offices spanning Europe, the US and Asia.