Does Discounting Subscriptions Work?
“Who are you fooling if you get someone in for one dollar a week?” -George DiGuido, VP, Growth, at The Information
Publishers know that giving a subscription discount is a double-edged sword. You might boost some of your numbers — but will that ultimately benefit your business?
In this newsletter, we’ll explore some wrinkles. I’ll include takes from The Information and an investor, thanks to last month’s Subscription Show in New York.
And in a coming week (or weeks) we’ll talk about how The Atlantic, Forbes, and others manage audience acquisition, engagement and retention — and how publishers are still learning lessons post-Covid.
But first, as usual, some news.
- Dorian Benkoil, Chief Content Officer
News And Verts
Toronto Star Starts Betting On Micropayments (MediaVoices)
Toronto Star’s CRO Brandon Grosvenor calls them "microsubscriptions." The pay-per-article isn’t just revenue, though. Grosveneor says they’re “extremely impressed, surprised and optimistic about this becoming part of our acquisition strategy” of new subscribers.
Content – Not Data (A Media Operator)
AMO’s Jacob argues that B2B media needs better high-quality, original content instead of relying so much on data in order to compete with niche newsletters.
Complex’s Latest Business-Iteration (The Rebooting)
"Digital media survivor" Complex is shifting from ads-only to a mix of marketplace commerce, media/sponsorship, and events to keep young audiences engaged.
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AI News
Financial Times Calls Out Google (PressGazette)
The FT public policy director claims Google forces publishers to allow AI use of their content by leveraging search visibility, breaking a longstanding “social contract.” The FT has partnered with OpenAI and others to seek fairer revenue-sharing models, highlighting ongoing disputes over copyright and compensation.
Perplexity Defends AI’s Role in Media (TechCrunch)
In response to News Corp’s copyright lawsuit, Perplexity argues that News Corp’s claims misrepresent how Perplexity uses content. The AI startup refutes allegations of large-scale content copying and accuses NewsCorp of being “fundamentally self-defeating and shortsighted” for suing. NewsCorp’s response accuses Perplexity of abusing intellectual property and being harmful towards journalists.
Adobe Makes AI Video Generation Tools More Accessible (Axios)
Adding generative AI tools to PremierePro comes after their recent addition of a “do not train” tag.
Hollywood Studio Not Looking for AI Deals (Axios)
Legendary Entertainment, “one of the few Hollywood studios on solid financial footing” and owner of the rights to Godzilla and Dune, is looking for M&A opportunities but won’t pursue AI deals. CEO Josh Grode says AI is “oversaturated” for deals.
Some Media and Tech Books We’ve Been Reading*
Wharton professor Ethan Mollick views ChatGPT as a “co-intelligence” and explores ways to incorporate AI into our professional and personal lives in Co-Intelligence: Living and Working with AI.
In “Hook Point: How to Stand Out in a 3-Second World”, Brendan Kane explains how publishers can master "hook points" to amplify their messages and effectively engage audiences.
Adam Nagourney’s The Times is a painstaking recounting of the Times’ history in recent decades. Worth a skim if you want to learn more on grappling with business and digital transformation. Oh, and how church and state aren’t quite as separate as you might want to believe.
* We’ll be compensated if you buy from these links. Thank you for the support.
When Subscription Discounts Don’t Work
You’ve seen the discounts: A year of The Washington Post for $29. Streaming services free for a few days, or discounted for the first few months. The New York Times All Access for $1/week for six months (or recently a year!), or a local newspaper for $1/month for six months.
“Who are you fooling if you get someone in for one dollar a week?” -George DiGuido, VP, Growth, at The Information
For subscription publications, those kinds of discounts can boost the numbers — which can serve multiple purposes. Sometimes, especially in a public corporation or one that’s reporting to investors or acquirers, the number of subscribers will spike – at least temporarily. This can bring in some extra cash, and help fulfill some advertising needs by boosting the numbers of impressions.
But does subscription discounting ultimately work, especially for niche or vertically focussed pubs?
In this issue:
“We (subscription businesses) are built on sleeping zombies” -Vijay Menon, CEO and Founder of Butter Payments
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