Writers’ strike impact on streaming, news from TikTok, Meta & Spotify
Welcome back to Subscriptions Weekly! This time we review the impact of the SAG-AFTRA strike on streaming services. We check on TikTok and Meta’s ad-free subscriptions, and Spotify’s audiobook benefits for subscribers.
What’s a subscriber? The writers’ deal makes that question more important
The guild’s deal with the Alliance of Motion Picture and Television Producers breaks new ground on residuals–paying writers a bonus if 20% or more of a streaming service’s users watch it within three months of release. Those bonuses will rely not only on the “view” but also on subscribers. And that’s where things get tricky. Is everyone who subscribes a subscriber? Or should they only count those who actively use the service? Learn more on Hollywood Reporter.
Netflix is planning to raise prices... again
The streamer will reportedly issue the price hike a “few months” after the Hollywood actors' strike ends, which could happen in the coming weeks. It’s still not clear how much Netflix will raise prices. Earlier this year, the platform cracked down on password sharing and started charging an extra $7.99/month to share accounts. Read more on The Verge.
TikTok confirms test of an ad-free subscription tier outside the U.S.
Code within the app indicates that TikTok might begin to test an ad-free subscription tier for users. The site reported that for $4.99, subscribers could get an ad-free experience. TikTok makes most of its money from ads, and so far, it’s proven resilient to the broader slowdown in online ad spending. Learn more on TechCrunch.
Meta to charge EU users for ad-free service
Meta Platforms aims to introduce ad-free subscription plans for Instagram and Facebook users in Europe. The proposal is an attempt by Meta to comply with European Union regulations that threaten to curb its ability to personalize ads for users without their consent and hurt its major revenue source. Read more on Reuters.
Spotify is giving subscribers 15 hours of audiobook listening per month
This iteration of Spotify’s audiobook business has been two years in the making. It’s a big leap and can potentially introduce millions of new listeners to the medium. Users can try out as many audiobooks as they want from a set library but cap the included listening at 15 hours. Listeners can then purchase an additional 10 hours for $10.99. Learn more on The Verge.
📣 The secrets to profitable subscription growth
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📅 Subscription gifting: Everything you need to know
Our latest survey shows that 53% of gift givers and 51% of recipients are considering subscriptions as presents this year. How much will they spend? How can you turn one-time gift recipients into long-term consumers after a gift subscription expires? Check out the report.
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