There are rising worries that the Sonos app may require a subscription in the future, as the company has reported declining revenue for two consecutive years, and a former employee has further fueled these concerns.
Notably troubling is the fact that all requests initiated within the app now route through a Sonos server instead of being processed locally, granting the company complete oversight of user activity.
Wired begins its speculative piece by outlining the challenging financial circumstances faced by the company.
This marks the second straight year that Sonos has experienced a drop in year-over-year revenue—reporting a 5.5 percent decline in 2023, alongside two rounds of layoffs. CEO Patrick Spence described the year as “challenging,” acknowledging that maintaining momentum after two strong years during Covid was always going to be difficult, possibly hinting at a troubling trend […]
During its FY24 earnings call, investors pointed out that Sonos added merely 1 million new users this year—though it might sound impressive, it is the lowest figure over the last “five to 10 years.” While overall speakers per household slightly increased to 3.08 from 3.05 last year, with a shrinking new user base, how will Sonos continue to generate revenue in what appears to be a saturated market?
As we have seen a significant shift towards subscription models in the tech industry, ranging from apps to smart home devices, Sonos users are apprehensive that the audio brand may be contemplating similar strategies.
A quick look at community discussions on platforms like Reddit or even Sonos’ own site reveals that many users are already concerned that a shift towards subscriptions may be imminent. Their concerns are not unfounded; the functionality of the app has dramatically changed, making a subscription plan a technical possibility.
The changes between the current app and previous versions were underscored in a technical analysis by developer and self-described “Sonos fanboy/hacker” Andy Pennell. He notes that the app has evolved from being able to manage devices over a local network to one that operates through its cloud services. This transition to all requests being routed through Sonos’ servers ultimately enhances the company’s control over what users can and cannot do with their equipment, a move that caught many off guard.
An ex-Sonos developer who was recently laid off further stoked these fears, suggesting that the substantial investments in an app that does not generate revenue seemed illogical unless there were plans for a subscription model.
WIRED consulted a former Sonos developer who was let go in the company’s recent layoffs, who requested anonymity to avoid potential repercussions in his job search. Though his role did not involve app development directly, he collaborated with the team and assisted with troubleshooting. He expressed skepticism about why so many resources were being allocated to an app that lacked a revenue stream.
“I was quite doubtful about the resources we were dedicating to an app that isn’t generating any revenue. The only justification I heard from the app team pertained to its flexibility and the new possibilities it could unlock,” he remarked. “However, it wouldn’t surprise me if there are indeed plans for some form of subscription model.”
The report mentions that while Sonos has denied any immediate subscription plans, it hasn’t completely ruled out the possibility for the future.
Sonos has firmly denied to WIRED that a subscription service is currently being developed.
Customers are already dissatisfied with the complications caused by the new app and seem to lack confidence in the company’s assurances so far.
Photo by Lukas Hellebrand on Unsplash
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