1. The document discusses the shift to the subscription economy where services are increasingly consumed through subscriptions online rather than one-time purchases. 2. Key aspects of building a successful subscription business are discussed, including starting annual recurring revenue, reducing churn, and increasing average contract value to grow ending annual recurring revenue. 3. The subscription economy requires publishers to provide flexibility, value, and a customer experience that opens doors to future opportunities through offerings like multiple content bundles, pricing tiers, and customized subscription journeys.

1. Nationaal Uitgeefdag 2012
Justin List - Media Specialist - Zuora
Timo Zuidgeest - Media Specialist - PossibilIT BV
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2. The subscription economy. Something New?
Yes and No
eCommerce has revolutionised purchasing habits and
transformed the way that services are consumed. The
proliferation of web channels and development of converged
devices means that today’s purchases are more likely to be
transacted online and provided as a subscription service.
“ For the first time ever, The Financial Times is reporting that the number of digital subscribers has
eclipsed the number of print subscribers and half of sales from the Financial Times’ group is generated
from digital revenues ”
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3. The subscription economy. It’s all about.
Starting ARR – Churn + ACV = Ending ARR
Starting Annual Recurring Revenue
Customers that leave you
New customers & subscription upgrades
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4. The subscription economy. The new things
Subscriptions
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5. The subscription economy and Media
Today publishers must deliver:
• Choices.
• Flexibility.
• Value.
• Responsiveness to differentiate.
• A customer experience that open doors to future
opportunitites.
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6. This is the value of media Subscriptions
Shares of Gannett, New York Times, McClatchy and E.W. Scripps are up
between 36% and 63% over the last 12 months, compared to 13% for the
S&P 500
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7. What’s Next – Subscriptions 2.0
• No longer a transactional or pay upfront model.
• Definition of subscription has changed, it’s not just a print
subscription in a digital world.
• Subscriptions are now dynamic and customers demand
flexibility - Not about simple annual plans and pre-pay.
• Needs to think about new business models; new ways to
monetize those relationships.
• Goes beyond just paywall, requires holistic understanding of
the customer relationships, and manage it from commerce,
billing, and finance.
• Need to move faster, deliver different revenue strategies.
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8. Subscription Journeys
Renew
Bundles
Add-on
Upgrade
Subscription
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9. What are Subscriptions 2.0? Cross content
bundling (news, video, data, apps)
• The economics of the media industry have changed
from the fixed costs of the print cycle to the varied cost
of multiple media.
• Customers are used to consuming media across
multiple channels , even for the same information.
• Being able to segment and cross-sell content across
various channels opens up new possibilities on
bundling and segmenting.
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10. Subscription Business Maturity Curve
GROW
Revenue Product Pricing International
Launch Enhancement Expansion Optimization Growth
Single Product Product Upgrades Add-On Products Pricing Tiers Multiple
Currencies
Usage & Overage
Simple Monthly Different Billing Product Bundles
Recurring Frequencies Regional Pricing
A/B Testing
LAUNCH PIVOT SCALE
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11. Digital Content enables Subscription Strategies for
growth in the Subscription Economy
Strategies
1. Freemium Revenue
2. Multiple Editions Growth
3. Promotional Churn
Lower Customer Defense
4. Pay-as-you-Go
Acquisition Costs
5. Overage
Competitive Advantage
6. Volume/Tiered
7. Bundling Market
Share Capture
8. Segmentation
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12. Example #1 Freemium Upsell Strategy
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13. Example #2 Multiple Edition Strategy
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14. Example #3: Promotional Strategies
Start with a
free trial.
Annual
Subscription
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15. Example #4 #5 On Demand, User and Usage
based pricing , Pay as you go, Overage
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16. Example #6: Tiered / Volume Pricing Strategy
Differential
pricing based
on tiers/
volume.
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17. Example #7: Bundling Strategy
Create
flexible
pricing &
packaging
bundles.
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18. Example #8 Segmentation (content, location,
customer…)
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19. A/B Test Everything
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20. In Summary
1. Your customers are changing , your subscriptions
need to adapt to them.
2. With digital there is huge opportunity for new
predictable revenue streams.
3. Agility and speed to market are key.
4. Revenue Diversity, multiple income streams.
5. Upsell, cross-sell- add-ons, bundles, premium
subscriptions.
6. Optimize. Digital content can be segmented (content,
location, audience, subjective theory of value).
7. A/B Test price!!
8. Price agility.
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