CE Brands Locking Customers Into Subscription Fees

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Anova, a brand which is available in Australia at retailers such as JB Hi-Fi, has said that it will begin charging a subscription fee for new users of its sous vide cookers who want to access additional features through its Anova Culinary app.

Anova will begin doing so from August 21, and said that existing users and those who purchase an Anova cooker before that date can continue to use all of the app’s features for free.

In Australia, new users will need to pay a monthly subscription fee of A$2.99 or a yearly fee of A$14.99, according to figures on Apple’s App Store website.

The sous vide cookers can be used without the app too. However, the app facilitates additional functions such as the ability to start a sous vide cook and adjust the temperature remotely, get cooking status updates, access recipes, and sharing them with others too.

“As our community has grown, so have the demands on our resources. Our community has literally cooked 100s of millions of times with our app. Unfortunately, each connected cook costs us money. So, to continue delivering the exceptional service and innovative recipes you’ve come to expect, we’re introducing a small subscription fee for our app,” said Anova CEO Stephen Svajian, while attempting to justify the company’s move to add a subscription fee.

Also, Anova recently announced that it was shutting down remote connectivity for its original Bluetooth and Bluetooth+ models on the app by September 28, 2025. Those devices can continued to be used locally, though they will be unable to connect to the app after that date.

Other brands too are also rolling out subscription fees that eventually add on to the operational cost of the gadget even after a customer has paid hundreds of dollars for that device.

Screenshot 2024 08 21 125348 CE Brands Locking Customers Into Subscription Fees

With LG, consumers may soon need to pay a subscription to unlock features on LG ThinQ appliances. LG Electronics racked up more than 1 trillion won (approximately A$1.08 billion) in sales in its subscription business in 2023.

Management admit that subscriptions will play a prevalent role on LG’s range of household appliances with systems being updated over the air in a move that will make certain services only available if you subscribe to an LG Electronics service.

Management claim the goal is to further evolve LG ThinQ UP appliances that upgrade functions customers need even after purchase and evolve into a “Home as a Service platform,” which includes customer personalization options, subscription services, and support for unnamed smart home services. Today’s LG appliances are specifically being designed to enable updates of new features via the ThinQ app.

Other brands though are taking a more empathetic approach to customers who do not want to fork out an additional amount on subscriptions. Take, for example, Uniden which sells its security cameras in Australia.

As ChannelNews recently reported, Uniden introduced a range of eight new cameras, none of which had surprise subscriptions or additional ongoing charges. “We’ve taken all kinds of consumers into consideration when developing this range, knowing that people seek out trusted brands with a local presence, and most importantly create products that are reliable with no hidden fees after the product purchase,” said Brad Hales, National Marketing Communications Manager for Uniden.

Apart from the CE companies charging a subscription fees for their own apps, other service providers that consumers rely on extensively are also raising their subscription fees adding to the overall cost that customers are spending on technology. In Australia, Netflix and Spotify increased their subscription fees this year. Spotify’s Premium Family plans increased from $20.99 to $23.99 per month, an increase of $3 a month, while its Premium Individual plan increased from $12.99 to $13.99 per month. Netflix increased the cost of a premium subscription from $22.99 to $25.99, a standard subscription went from $16.99 to $18.99, while a standard subscription with ads is up from $6.99 to $7.99.

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