Subscription fatigue is real. But when it comes to predictable, sometimes upfront revenue, tech companies still can’t bring themselves to hit “cancel.”
One such company is Oura Health Oy, the popular Finland-founded smart-ring maker. CEO Tom Hale recently made it clear the company isn’t backing away from the business model that helped turn the smart-ring maker into an $11 billion company.
His stance comes as consumers have increasingly turned up their noses at recurring fees, especially when they have to buy a product first.
Hale argues that Oura’s monthly fee of $5.99 or $69.99 per year funds the steady stream of updates that keep the product valuable long after the ring is sold. The company’s physical ring, the Oura Ring 4, ranges in price from $349 to $499. In the past year, the company has added two new integrations to provide users with more accurate data from their Oura ring, as well as 14 new features addressing, among other things, pregnancy and cumulative stress.
“Oura’s membership model is what powers ongoing innovation, and we see strong evidence that members continue to find meaningful value month over month with a better than best-in-class retention rate,” Hale said in a comment to Fortune.
