Subscription success: Retention, payments & content
Welcome back to Subscriptions Weekly! In this issue, we review why subscription companies must pivot to retention strategies for the rest of 2023 and how they can turn payments into strategic assets. We also dive deeper into Max’s new branding and YouTube and Twitter Blue benefits to subscribers.
As the subscription bubble bursts, experts advise fast pivot to retention strategies
With cancellations outpacing new signups since the last quarter of 2022, companies must have systems and processes in place to prevent churn and the loss of subscribers–from failed payments or myopic attention to subscriber growth rather than a renewed focus on retention strategies. Read more on PYMNTS.
Recurring payments market set for slow growth
According to Juniper Research, the transaction value of recurring payments will exceed $15.4 trillion globally in 2027–a 17% growth from 2023.
This relatively slow growth indicates how the market is already well-established but also disguises a rapid change of payment methods in the space. Digital wallets continue to gain popularity, and businesses are looking to offer payment methods with lower processing costs.
Juniper Research has shared the top 20 recurring payment platforms–ranking Recurly as one of the top three. The leading players scored well based on variety in payment integrations, tracking, and customizable payment plan capabilities. Learn more at Businesswire.
What business leaders typically get wrong about payments
73% of executives know payments are fundamental to growth and understand digital processing capabilities are necessary to avoid lost revenue. Still, they regard their commerce system as a cost rather than a strategic asset. Many do this because they’re unaware of the possibilities embedded payments bring to the table. Read more on FinTech.
Subscription companies see an opportunity in alternative payment methods. According to The State of Subscriptions report, Recurly merchants saw a 119% revenue lift by enabling PayPal and a 154% revenue lift by enabling SEPA.
Download the full report to get more insights into the future of recurring payments and learn how to recession-proof your business with the right strategy across the subscriber lifecycle.
Warner Bros. Discovery rebrands flagship streamer to Max
Max will officially debut in the U.S. on May 23 and will offer programming from HBO alongside content from Discovery brands, like TLC and HGTV, and discovery+.
The service will keep the same price as an HBO Max subscription: $9.99 for an ad-supported tier and $15.99 for an ad-free tier. However, the company is moving some perks in its ad-free plan, like higher-resolution streaming, more concurrent streams, and higher download limits, to a more expensive $19.99 tier called Max Ultimate. Learn more on Marketing Brew.
Last week, Oscar Wall, Recurly EMEA General Manager, shared his insights about this decision on the BBC World Business Report.
He states: “This merge is about scale and reach, and it does have the potential to put Max in the top echelon of global streaming services. It also provides some degree of future-proofing by repackaging and launching more niche and narrow subscription offers.”
YouTube is giving Premium subscribers higher-quality video than everyone else
YouTube’s introducing an enhanced 1080p HD video quality for Premium subscribers–that makes things look crisper, particularly with videos heavy on detail and motion. It’s only available on iOS for now, with the option coming to web soon. Read more on The Verge.
Twitter introduces 10,000-character long tweets for Blue subscribers
The platform has introduced a new feature that lets Blue subscribers post 10,000-character long posts and supports bold and italic text formatting. This company’s push for long-form writing is part of its creator monetization tools–which are only available in the U.S. at the moment. Learn more on TechCrunch.
Join Recurly at these exciting events
From sign-up to renewal: Streamline subscription management. See first-hand how you can reduce churn, maximize revenue, boost growth, and improve payments. Come armed with your subscription questions! We'll be happy to answer them. Save your spot here.
How to automate DTC subscription revenue recognition. Learn how Recurly automates ASC-606 and IFRS-15 compliance with its revenue recognition engine, built to handle your most complex subscription contracts and pricing configurations. Watch now.
From the Recurly blog
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