Oura confirms it has no plans to stop its recurring fees

A number of challengers have come for Oura’s throne in recent years, like the Samsung Galaxy Ring and Reebok Smart Ring. However, Oura has managed to keep its rivals at bay, despite its competitors offering not only cheaper hardware, but also no recurring fees. If you were holding on to hope that these challengers would convince Oura to drop its subscription model to remain competitive, it looks like you were barking up the wrong tree.

As reported by Bloomberg, Oura CEO Tom Hale stated in an interview that his company’s subscription model “is necessary to support the company’s focus on accuracy and long-term health insights.” Hale claims that the subscription allows for continuing value, as Oura’s service provides health benefits and new features over time.

The executive adds that the recurring fees are what fund Oura’s research into improving its offerings:

We use those funds to invest in science, new capabilities or being accurate. That results in better retention, which allows us to invest more.

If you’re unfamiliar with Oura’s offerings, a membership costs $5.99 per month or $69.99 annually. This membership is required in addition to the purchase of an Oura Ring, if you want access to its features. Just for reference, the company’s smart rings start at $349 and end at $499.

It appears that Oura’s membership is holding on strong, despite more and more alternatives popping up. According to Hale, Oura has millions of active subscribers, with 75% of them logging in at least five times a week. Hale also mentions that Oura’s subscriber base surpasses many streaming platforms.