The average promotional price for major publishers’ subscription products has nearly halved in the past 12 months, according to Toolkits research.
Toolkits reviewed the 100 most popular subscription sites among U.S. audiences and found that the average price available to new subscribers was $0.043 per day in June 2023, down 43.4% from an average of $0.076 per day in June 2022. (The length of access offered at promotional prices varied between publishers.)
Publishers’ promotional subscription prices have declined consistently in recent years, on average, broadly driven by a few key factors:
- Converting new subscribers has become increasingly challenging against a backdrop of ongoing economic uncertainty. Consumers and businesses alike are controlling their spending more closely, prompting publishers to lower the barriers to entry for their subscription offerings.
- Publishers’ subscription businesses remain in the growth stage of their lifecycles. As consumers become more comfortable with the concept of paying for digital publications, many publishers are in land-grab mode as they attempt to maximize their market share and subscriber bases.
- Competition for consumer attention is growing. Publishers are being forced to compete for consumer attention more aggressively as subscription products proliferate, driving down prices as a result. Publishers are aware that consistent engagement is a prerequisite for building long-term subscriber relationships, making cheap — and long — introductory periods a necessity as consumers evaluate a growing array of options.
Subscription hopping
The widespread availability of cheap promotional offers is making it increasingly challenging for publishers to loyal relationships with subscribers, as a significant portion of U.S. consumers hop back and forth between products in order to limit their spending.
Just 38% of consumers have kept their subscriptions consistent over the past year, according to The Reuters Institute for the Study of Journalism’s 2023 Digital News Report, while 25% took out new subscriptions and 25% canceled subscriptions. Given that U.S. respondents said they hold two subscriptions on average, the data imply a high level of turnover as subscribers bounce back and forth between different publishers’ products.
That behavior looks set to continue as publishers compete more aggressively for consumers’ subscription dollars and readers continue to shop around and take advantage of cheap deals.
Promotions and trials are here to stay
Our research found that 82% of large publishers now offer promotional discounts, up from 75% a year ago. Among the publishers offering promotional discounts:
- 66% offered discounted periods of 3 months or more.
- The average promotional period came in at 5 months (22 weeks).
- The majority offered paid trials (88%), while 12% made trials available for free.
For those publishers offering the most aggressive promotional rates and offers, the hard work of “selling” a subscription now begins after a conversion takes place. Robust subscriber onboarding experiences are an increasingly vital part of any subscription business, and publishers that fail to deliver and clearly demonstrate ongoing value in the days and months following conversions will struggle to graduate trialists into genuine subscriber relationships.
Since they’re now commonplace across the market, publishers have effectively trained audiences to expect trials and discounts when beginning a paying relationship. Publishers that don’t offer them are simply making life difficult for themselves in most instances, although some may opt to avoid trials and offers in an attempt to differentiate themselves from the competition or to communicate more “premium” positioning regardless.
We’ll continue to track pricing trends as the year progresses. If you find value in this type of data, please let us know what you’d find most useful by filling out this short 4-question survey.
Methodology: Toolkits analyzed the top 100 publisher sites selling digital subscription products on either a 4-week or monthly basis and collected data on June 13, 2023 and June 14, 2022. Sample sites were ranked and selected based on the volume of U.S. visits they received during 2021 and 2022, as measured by Similarweb. Pricing and billing terms are based on publisher disclosures at the point of purchase. All offers analyzed were for “basic” digital plans or products, and were publicly available to new subscribers. Offers were observed using the incognito feature of Google’s Chrome browser via a New York City IP address.