SUBS Subscription Economy Report (July 1-July 22)

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

Microsoft and Netflix Team Up
After first announcing plans to launch a cheaper, ad-supported subscription plan to Netflix in April, Microsoft has been named Netflix’s global advertising and sales partner. This means that all ads streamed through Netflix will be exclusively available through Microsoft’s platform. Netflix stated that their long-term goal is give more choices to consumers and a premium, better-than-linear TV brand experience for advertisers. [1]

 

Microsoft

 

 

Xfinity Stream App 
Comcast announced the launch of the Xfinity Stream app on Apple TV 4K and Apple TV HD, giving Xfinity TV customers another way to access their subscriptions. The redesigned app offers editorial recommendations that makes it easier to find new content to watch. There is also a new personalization algorithm that allows customers to continue watching their shows or movies across any platform or device. [2]

 

Comcast

 

 

New Google Meet Features
Features which were previously only available on Google Workspace are now being offered to Google One subscribers. The new Google One features include: 

- the ability to have group calls lasting up to 24 hours (up from a previous limit of one hour)
- access to Google Meet’s background noise filtering feature
- support for recorded video calls

The features will be available to subscribers in US, Canada, Mexico, Brazil, Japan, and Australia who pay for 2TB of storage or more. [3]

 

Google

 

 

 

More Subscription Features for Instagram 
Instagram announced an expansion of test features for their creator subscription services. The initial features included subscriber-only stories, subscriber badges, and subscriber-only livestreams. The new updates to Instagram subscriptions are:

- subscriber group chats (that can include up to 30 people)
- subscriber-only reels and posts
- ‘subscriber-only’ tabs on a creators’ profiles

Meta does not take a percentage of creator earnings and hopes Instagram subscriptions can be a way for creators to establish a sustainable and predictable income. [4]

 

Instagram

 

 

Snapchat for Web 
Snapchat+ subscribers in the United States, United Kingdom, Canada, Australia, and New Zealand will be able to access Snapchat for Web. With Snapchat for Web, users can send messages and snaps, video chat, and make regular calls from their desktops. Snap plans to bring its Lenses feature to video calls in the future. Just like the mobile app, messages sent on Snapchat for Web will be deleted after 24 hours, and users will not be able to take screenshots. [5]

 

Snap

 

 

 

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) Parakhin, Mikhail. “Netflix names Microsoft as partner for new consumer subscription plan,” Official Microsoft Blog, July 13, 2022. 
2) “Xfinity Stream App Launches on Apple TV 4K and Apple TV HD,” Comcast, June 30, 2022
3) Porter, Jon. “Google Meet’s premium video calling features come to individual subscribers,” The Verge, July 11, 2022 
4) Silberling, Amanda. “Instagram is adding more features to its creator subscriptions test,” Tech Crunch, July 14, 2022. 
5) Malik, Aisha. “Snap launches Snapchat for Web to bring the app’s core features to desktop,” Tech Crunch, July 18, 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.