Monthly subscriptions may be largely worthless for many publishers, FT Strategies argued last week. The subscription consultancy published an analysis of one of its client's data and suggested that offering short-term subscriptions at aggressive discounts is not an effective way to maximize revenue in many instances. Publishers optimizing for revenue instead of simple subscriber volume would be better off pushing audiences to longer terms instead, it said.
The analysis sparked conversation among publishers. Some observers said the churn data in the case study seemed extreme compared with other benchmarks published by organizations such as INMA and technology vendors such as Piano.
But regardless of whether or not the data in the FT’s study reflects the experiences of publishers more broadly, it highlights mounting questions about sampling strategies for publishers’ subscription products as the distribution landscape continues to shift around them.