SUBS Subscription Economy Report

Industry updates from the Fount Subscription Economy ETF (SUBS). 
Click here to access the full list of holdings. 

 

Zoom One
Zoom Video Communications introduced Zoom One which combines persistent chat, phone, meetings, and whiteboard functions into one, secure package to meet a business’ individual needs. They also launched translated and multi-language captions that show real-time captions of what is being said in the meetings. The feature is available in Chinese (simplified), Dutch, English, French, German, Italian, Japanese, Korean, Russian, Spanish, and Ukrainian.

Zoom One offers six tiered plans including:
- Zoom One Basic (free): free 40-minute Zoom meetings for up to 100 attendees, persistent chat for team messaging, limited whiteboard usage, and real-time transcription
- Zoom One Pro ($149.90 per year per user): Zoom One Basic features without time restrictions, plus cloud recording|
- Zoom One Business ($199.99 per year per user): Zoom One Pro features plus meetings for up to 300 attendees and unlimited whiteboard usage
- Zoom One Business Plus ($250.00 per year per user): Zoom One Business features plus unlimited regional calling and the all-new translation feature
- Zoom One Enterprise*: Zoom One Business features with larger meeting capacity and additional features, Zoom webinars
- Zoom One Enterprise Plus*: Zoom One Enterprise features plus unlimited regional calling
* Subscribers interested in an enterprise plan need to talk to Zoom’s sales team for pricing and enrollment [1].

(Zoom)

Snapchat+ 
Snap Inc. announced a $3.99/month subscription plan for Snapchat that unlocks exclusive features called Snapchat+. The subscription includes pre-release, experimental, and exclusive features like pinning your close friend as a BFF and customizing the app’s icon. Snapchat+ will be available in the United States, Canada, the United Kingdom, France, Germany, Australia, New Zealand, Saudi Arabia, and the United Arab Emirates [2]. 

(Snap)

 

Cheaper Netflix Plans
Netflix’s co-CEO Ted Sarandos confirmed Netflix’s plans to introduce an ad-supported tier to its streaming service by the end of 2022. The decision to launch a new, cheaper tier follows news of Netflix losing subscribers for the first time in over a decade last quarter. 
Google and NBCUniversal are both in talks to help Netflix build out its ad business. Pricing for the new subscription plan has not yet been announced [3].

(Netflix)

 

Comcast Launches Sirius XM 
Comcast is releasing SiriusXM’s audio content on the cable giant’s Xfinity X1, Xfinity Flex and XClass TV platforms. To access SiriusXM content on Comcast, customers must have a SiriusXM subscription, and Comcast customers are eligible to a free three-month subscription to SiriusXM’s services. Comcast is also planning to expand support to add access to SiriusXM’s video library, which offers more than 11,000 pieces of content, including interviews and clips from “The Howard Stern Show,” and exclusive music performances [4]. 

(SiriusXM/Comcast)

 

Learn how to invest in your future experiences with Fount ETFs
 

The Fount Metaverse ETF (MTVR)

The Fount Metaverse ETF (MTVR) seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index.  The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology.

MTVR may be an attractive vehicle for investors looking to invest in the metaverse.

For a full list of MTVR holdings, please click here.

 

The Fount Subscription Economy ETF (SUBS)

The Fount Subscription Economy ETF (SUBS) seeks to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Fount Subscription Economy Index. The Index was designed to measure the performance of companies engaged in the business of providing subscription services, i.e., companies that sell products or services for recurring subscription revenue.

SUBS may invest in companies that offer subscription-based pricing models, including those in the technology hardware industry.

For a list of SUBS holdings, please click here.


1) Neuts, Dana E. “Zoom Introduces Zoom One Tiered Subscriptions,” Subscription Insider, June 24, 2022
2) Yang, Lily. “Snap announces Snapchat+ subscription plan that costs $3.99 a month,” CNBC, June 29, 2022 
3) Porter, Jon. “Netflix confirms an ad-supported tier is really, actually happening,” The Verge, June 24, 2022
4) Spangler, Todd. “Comcast Launches SiriusXM Streaming App on Xfinity Devices,” Variety, June 29, 2022

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Inhee Lee

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.

Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.

Risk Disclosure:

 

Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. 

 

The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.

 

For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities. 

 

Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.

 

The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility.