This is the latest installment in a series exploring consumer attitudes to publishers’ digital subscription products, based on research conducted by Toolkits and NRG.
- 73% of consumers say they’re more likely to subscribe when publishers offer them introductory discounts.
- 54% of consumers say they’re more likely to subscribe if a publisher has allowed them to access some content for free.
- Consumers are evenly split on whether they’d rather pay more money upfront for long-term savings (30%) or a smaller monthly fee that costs more in the long run (33%).
Consumers say they’re more likely to subscribe to digital publications that offer them introductory discounts and free trials, according to research by Toolkits and National Research Group.
In a study of 1,007 U.S. consumers who have subscribed to digital publications, 73% said they are more likely to subscribe when offered an introductory discount, and 76% said they’re more likely to subscribe if a free trial period is offered.
54% of consumers also said they’re more likely to subscribe if a publisher has allowed them to access some content for free, and 67% of consumers said they would be more likely to subscribe if the process of canceling was easier than it currently is.
When it comes to evaluating monthly plans vs. longer annual commitments, consumers are evenly split on whether they’d rather pay more money upfront for long-term savings (30%) or a smaller monthly fee that may cost them more in the long run (33%). The remainder – 37% – said they do not have a preference.
Considerations for publishers
Introductory discounts drive purchasing decisions
The majority of leading consumer-facing publishers continue to offer introductory discounts and free trials for one simple reason: They remain an effective driver of sustainable subscription growth.
What consumers say and what they actually do often varies widely, so self-reported data should be always taken with a grain of salt. Nevertheless, advanced publishers say behavioral data tells a similar story, and that introductory discounts continue to prove effective for growing their subscriber bases and revenues. There’s a reason introductory rates continue to be offered by the world’s most successful subscription publishers, and their use does not immediately call into question the health of a publisher’s business despite what some industry observers suggest.
Consumers expect introductory rates
Publishers with valuable and highly differentiated subscription products don’t typically want to offer them at reduced prices, and some argue that introductory offers risk “cheapening” products in consumers’ eyes. But the reality is consumers have largely been trained to expect introductory discounts when beginning subscription relationships. While some publishers might avoid them in an attempt to differentiate their offerings and communicate more “premium” positioning, they might simply be limiting their subscriber growth as a result.
Short-term vs. long-term revenue
One common critique of introductory discounts is that publishers are leaving money on the table by selling at a discount, but as far as many publishers are concerned the data tell a different story. Introductory discounts may cost publishers revenue in the near term, but the additional subscriber volume afforded by introductory discounts often results in significantly greater revenue yield over a multi-year period.
Many publishers also say they see little evidence to support the theory that discounted subscribers will churn at a significantly higher rate than those who pay full price from day one. Publishers optimizing for short-term revenue may wish to curb their discounting, but for those looking to maximize revenue on a long-term basis, introductory discounts will continue to be attractive.
The B2B exception
Publications targeting business or professional audiences may face very different dynamics, particularly if subscriptions are being expensed or charged to an entity other than the individual purchasing them. Publishers that sell primarily to businesses may find that introductory discounts are less effective at converting subscribers and that less aggressive discounting could result in greater revenue yield.
Methodology: Research was conducted by Toolkits and National Research Group, a global research and insights firm that works with the world’s largest content creators and marketers. The study surveyed 1,007 U.S. consumers aged 18-64 who reported having a current or previous subscription to at least one digital publication and was conducted in October 2023. The audience for this sample was weighted to reflect the pool of total subscribers to digital publications in the U.S., based on a larger market-sizing study of 6,562 consumers.