Sonos Subscription Concerns Arise Amid Declining Revenue
Amid declining revenue for the second consecutive year, speculation is mounting that Sonos may introduce a subscription model for its app. This concern stems from the app's shift to server-side control, giving Sonos greater control over user actions. Similar issues with app access have been observed in other platforms.
The company's financial struggles are evident, with a 5.5% revenue drop in 2023 and the slowest new user growth in recent years. This has led investors to question Sonos's future revenue streams in a seemingly saturated market. The smartphone market, for example, has seen similar saturation.
Community forums reveal growing user anxiety about a potential subscription model. A technical analysis by developer Andy Pennell highlighted the app's transition from local network control to cloud-based control via Sonos servers. This shift raises concerns about potential limitations on device functionality. Comparisons with other operating systems highlight the implications of such changes.
An ex-Sonos developer, laid off in recent cutbacks, suggested that the substantial investment in a non-revenue-generating app hinted at future subscription plans. They questioned the rationale behind such spending unless a subscription model was intended.
While Sonos has denied any immediate plans for a subscription, they haven't ruled out the possibility. This has done little to reassure customers already frustrated with the new app's complexities.