Passive renewals could boost subscription revenue by 200%

Eight percent of subscribers cancel during months when they are required to take specific actions to renew, compared to about 2% who cancel during other months, according to new research by Stanford and Texas A&M University economists. The findings illustrate why taking steps to mitigate passive churn and finding ways to reengage "sleeper" subscribers can have a significant impact on publishers' subscriber bases and revenues. Perhaps more importantly, it also highlights the extent to which some might be relying on revenue from unengaged and inattentive portions of their subscriber bases. Researchers Neale Mahoney, Liran Einav and Ben Klopack set out to examine what portion of monthly subscription payments are actually made unintentionally. In instances where subscriptions renew a