What makes subscribers stay? News from Netflix and Twitter
Welcome back to Subscriptions Weekly! This time we dive deeper into Nerflix’s successful Q2 results and how its password-sharing strategy brought in more subscribers. We review the strategies to avoid “serial churners” in streaming, how Twitter can improve its growth strategy, why the UK is facing a streaming slow-down, and new alternatives for sales promotions.
Netflix adds 5.9M subscribers in Q2
Netflix has reached 238 million subscribers globally after cracking down on password sharing. The streaming company has also announced it is dropping its cheapest commercial-free monthly plan in the U.S. and the UK to get more subscribers for its ad-supported option. Plans will go from $9.99 (£6.99) to $6.99 (£4.99) per month ad-supported tier. Read more on Advanced Television.
Tackling the problem of subscribers who binge…then bail
Streaming services attract subscribers with proprietary shows that may consist of just 10 or 20 hours of programming, and some viewers have learned to subscribe, quickly binge-watch what they want, and then cancel. How can you prevent this? According to Harvard Business Review, the secret is in tailored pricing, loyalty programs, and bundles.
In fact, the State of Subscriptions: What consumers want report finds that gifts (70%), exclusive products (66%), loyalty incentives through lower subscription prices (76%, and discounts (74%) all attract subscribers.
Download your copy to get the insights you need to delight your subscribers—from acquisition to renewals across generations and regions.
How do you solve a problem like Twitter’s advertising business? With consumers!
Twitter Blue has endured a rocky six months–less than half of the initial subscribers remain. While users are willing to subscribe if they see value in it, it seems like the execution is missing. Providing multiple ways for consumers to engage with Twitter, and a range of monetization options, will be the most sustainable approach moving forward. Learn more on Performance Marketing World.
UK streaming growth slowing down as subscription fatigue hits home
The growth of streaming in the UK is slowing down, according to a study by consultancy outfit Simon-Kucher. The Global Streaming Study found that only 38% of UK respondents indicated they stream more than last year, down 10 points from 2022. Additionally, the average number of subscriptions per respondent is now two, down 10% from last year. Read more on Digital TV.
20 experts on alternatives to sales promotions for brands
Promotions provide heart-warming and supportive messaging from brands that they are listening to their customers and can be a great introduction to a longer-term relationship. But while that relationship can develop, should a promotions-driven strategy be a mainstay?
Oscar Wall, Recurly EMEA General Manager states that the “focus in sales promotions will see a short-term revenue drive and reflect what consumers want – an important key to success in engaging consumers. As the advertising landscape continues to evolve, businesses may want to reconsider their strategies and prioritize promotional advertising to capture the attention of potential customers, consider recurring revenue strategies, and enhance customer loyalty incentives.” Learn more on Performance Marketing World.
Join Recurly at these exciting events
Delighting subscribers: Unlocking the power of payments: Join us for a panel discussion on payment strategies and trends for subscription businesses with GoCardless, Sling, and Optimized Payments, and learn the importance of payments in driving long-term subscriber growth and maximizing profitability. Save your spot.
From the Recurly blog
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