Fighting subscription fatigue, plus news from Netflix and X
Welcome back to Subscriptions Weekly! This time, we review how streaming companies can get smart about retention–combatting churn and subscription fatigue effectively. We review Netflix’s Q3 results and its plans to raise prices, and X’s upcoming test for a $1 annual subscription. Let’s dive in!
The streaming world needs to get smart about subscriber churn
Many SVOD platforms are looking at monthly churn rates as high as 30%. As streaming platforms shift to profitability after a decade of all-out growth mode, retention is now a top priority. The second era of the streaming wars won’t be won by those that execute modern behavior-based retention the best, but by those that do it the fastest. Learn more on AdExchange.
With subscription fatigue setting in, companies need to think hard about fees
More products and services are moving to a subscription model—and consumers are feeling it. Harvard Business School Professor Elie Ofek, warns companies about subscription fatigue and how companies can overcome it: “Be careful in terms of what subscriptions you think people will want. The pricing structure also has to be ‘right’ in order to be successful.” Read more on Harvard Business School.
Netflix subscribers surge as the company announces price hikes
Netflix reported a surge in Q3 subscriber numbers of nearly nine million and announced it will raise prices in the U.S., UK, and France. Basic and Premium plans in the U.S. will now cost $11.99 and $22.99, respectively. The $6.99 ad-supported plan and $15.49 Standard plan will stay the same price. Learn more on Yahoo!
X to test $1 annual subscription for basic features
X, formerly Twitter, will test a new $1 annual fee subscription for basic features to combat bots and spammer. The new "Not A Bot" subscription will charge users for likes, reposts or quoting other accounts' posts, and bookmarking posts on the platform's web version. Read more on Reuters.
📣 The secrets to profitable subscription growth
Join industry leaders from Conde Nast, CNBC, WBD, and more world-renowned brands in this multi-session virtual summit. Uncover the latest strategies to unlock profitable growth and long-term subscriber relationships. RSVP now.
📅 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.
From the Recurly blog
2023 Holiday trends: Consumers want to gift & receive subscriptions
How to gain data visibility in app store & web subscriptions
Scaling subscriptions with citizenM: Tips from Adyen & Vertex
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