Saturday, March 19, 2022

Oversubscribed? Peak Subscription? -- No, Peak Unlimited, Flat-Rate!

Amanda Mull wrote "This Is Peak Subscription: Forking over another $5 a month is getting pretty old" in The Atlantic (3/3/22), identifying the pricing problem: "trying to divine what constitutes an acceptable return on, say for or 10 bucks a month." Buying a new smart TV and loading all her streaming apps, she asked, 

Why am I paying for these things? How much of this stuff do I even enjoy? ...the kind of light-bulb moment that has stuck with me as I peruse my credit-card statements or shuffle through apps looking for something to watch on TV, trying to divine what constitutes an acceptable return on, say, five or 10 bucks a month. ...No one is sure how many subscriptions the average household will bear before it snaps and starts canceling things, but we might be about to find out. 

To which Tien Tzo (CEO of subscription management company Zuora) said: "Nonsense. Hogwash. Poppycock. Balderdash." in his well-reasoned rebuttal, "Is The World Oversubscribed?" (3/19/22).

As those familiar with FairPay strategies can see, both are right. This is peak unlimited, flat-rate subscription! That is because for most services the acceptable return actually realized will vary from month to month, depending on many variables not known until the month has ended. That means the acceptable price must vary with that month's need.

I expect a shakeout that will gradually kill many subscription businesses, but two kinds will thrive and grow.

  1. The biggest players, with the richest value propositions have the market power to survive even their bad pricing models.
  2. The others will find ways to make their pricing more flexible, able to track to varying levels of value, but still simple. (as Zuora's Subscribed Institute suggests).

Few yet understand how they can do that -- here is how...

My previous post, The Great (Streaming) War of Stupid Value Propositions -- Continued!, explains how more flexible strategies might operate as "risk free subscriptions" in which the consumer does not risk paying for a subscription they get little or no value from in a given month:

The essence of the risk-free subscription is to be flexible, in order to be value-based -- cheap or free at low or zero usage, and rising at a reasonable rate as usage and other aspects of value received increase in that month, up to a set monthly cap. Think of it as a pay-ramp instead of a pay-wall. This kind of flexibly affordable model that is based on the value that each individual viewer actually receives (and that ramps up less prohibitively than pay-per-view) will get more viewers to buy more subscriptions. That will generate more profit from more viewers for every provider who has content that viewers want.

Such a pricing model also offers sensible economics across a mix of providers and aggregators. Disney could leave most of its content on Netflix for those who are only occasional viewers, while attracting its more regular fans to direct relationships on Disney+ with added features (such as its newest and hottest shows, and extra perks).

Instead of the all-or-nothing battle for AYCE subscriptions, providers can build relationships with all or most of their potential viewers. Think of this as agile pricing for a good customer value experience (CVX) -- and for a fair revenue share to platforms, content providers, and creators.

More on this theme:

 ------------------------

More about FairPay

A brief introduction is in Techonomy"Information Wants to be Free; Consumers May Want to Pay"
(FairPay is an open architecture, in the public domain. My work on FairPay is pro-bono. I offer free consultation to those interested in applying FairPay, and welcome questions.)

 

37 comments:

  1. I definitely organized my thoughts through your post. Your writing is full of really reliable information and logical. Thank you for sharing such a wonderful post. 스포츠토토사이트

    ReplyDelete
  2. Unless you have a complete and functional system to deal with your old customers, you should not think of making new customers, as according to Dissertation Proofreading Service experts, this is against the principles of supply and demand.

    ReplyDelete
  3. https://www.startupicons.in/ Online Digital Marketing Services and Courses

    ReplyDelete
  4. This comment has been removed by the author.

    ReplyDelete
  5. this is a good blog i have read. my new blog on FFH4X APK. new app i just updated

    ReplyDelete
  6. I searched for a fantastic jacket that was reasonably priced for this winter, but I was unsuccessful. Suddenly, I went to Jacket Hub, where I was able to get the best deal on this Rod Wave Cold December Jacket.

    ReplyDelete
  7. For the girls, Jacketoria launched a big collection of outfits with unique designs and materials. Check out this Emily in Emily in Paris SO3 Lily Collins Green Printed Coat because this coat boosts your look. buy it now in best and possible price.

    ReplyDelete
  8. You can instantly upgrade your appearance by donning a leather jacket. The Wilson Jackets website now has a simple way for you to purchase them under the women's leather jackets category.

    ReplyDelete
  9. This comment has been removed by the author.

    ReplyDelete
  10. If you mean studying as an international student, it's quite fun according to my classmates. I myself do an international study with discounted package which i found from wadav.com. I advise to everyone if you desire to study in abroad with affordable amounts so you must visit the website of wadav they have lots of packages and deals for you.
    Mcgraw hill Promo Codes

    ReplyDelete
  11. Thanks for sharing your views us. Well, digital marketing is rapidly growing day by day.
    Digital Marketing Institutes in Noida

    ReplyDelete
  12. This is a really well-written piece. This page contains really high-quality and useful information. Lucifer Rising Rainbow Jacket

    ReplyDelete
  13. Very well explained, You provide such deep and easy to understand content. I would like to read more from you. Check out Digital Marketing Courses in Hinjewadi

    ReplyDelete
  14. It is a very interesting blog that provides great knowledge. Would like to read more from you. Check out Real Estate Digital Marketing Agency Pune

    ReplyDelete
  15. It's great of you to provide such deep yet easy-to-understand content. Would like to read more from you. Check out Digital Marketing Courses in Pune

    ReplyDelete
  16. It's great of you to provide such deep yet easy-to-understand content. Would like to read more from you. Check out Digital Marketing agency for Dentist in Pune

    ReplyDelete
  17. According to experts, you shouldn't consider acquiring new clients unless you have a thorough and effective system in place to handle your current clientele. I looked all over for a great winter Guardians of The Galaxy Vol 3 Jacket that was also affordable, but I was unable.

    ReplyDelete
  18. A sensible economics across a variety of suppliers and aggregators is also provided by such a pricing scheme. This is due to the fact that Accounting Dubai the acceptable return actually realized for the majority of services will change from month to month depending on a number of factors that won't be known until the end of the month.

    ReplyDelete
  19. Experts advise against considering bringing on new clients unless you have a comprehensive strategy in place to manage your current clientele. Such a Travis Bickle Jacket pricing model also offers a sensible economics across a range of suppliers and aggregators.

    ReplyDelete
  20. Experts advise against considering bringing on new clients unless you have Digital Marketing Agency San Diego a comprehensive strategy in place to manage your current clientele.

    ReplyDelete
  21. Great post! The information provided is insightful and well-organized. I appreciate the practical tips and examples given, which make it easy to understand and apply to my own website. Keep up the good work! I am a Digital Marketing Trainee at Softcrayons Tech Solutions Pvt Ltd providing Digital Marketing Training Institute Noida. Digital marketing training involves learning various strategies and techniques used to promote products or services through digital channels such as social media, email, and search engines.

    ReplyDelete
  22. Such a pricing model also offers a sensible economics across a range of suppliers and aggregators. Dubai Expo Entry Requirements

    ReplyDelete
  23. This is a great and very informative post! I would agree that I am scared to take on side hustles, but if its something that I love then I will continue. Thanks for sharing. Fast X Ramsey Leather Jacket

    ReplyDelete
  24. My own foreign studies is funded by a reduced package I discovered on wadav.com. I suggest that Business Accountant everyone check the website of Wadav if they want to study abroad at a reasonable price because they have many packages and discounts available.

    ReplyDelete
  25. Accounting services in Karachi provide valuable assistance to individuals and businesses in managing their financial records and ensuring compliance with regulations. With their professional expertise and knowledge of accounting principles, these services help maintain accurate and up-to-date financial information. Whether it's bookkeeping, financial statement preparation, tax planning, or auditing, accounting services in Karachi simplify financial management and enable informed decision-making. By leveraging these services, individuals and businesses can focus on their core activities while ensuring their financial records are in order.

    Accounting Services in karachi

    ReplyDelete
  26. This is a great post. I like this topic. This site has lots of advantage. I found many interesting things from this site. It helps me in many ways.Thanks for posting this again. Jason Momoa Snakeskin Jacket

    ReplyDelete
  27. Thanks for your blog, I just subscribe your blog. This is a nice blog..
    Hotline Miami Letterman Jacket

    ReplyDelete
  28. Unplanned expenses weighing you down? Consider short-term loans in Glasgow, a convenient way to access funds and handle your financial emergencies effectively. payday loans glasgow

    ReplyDelete
  29. Confidence blooms when you're draped in the Penny Benjamin Jacket – a masterpiece of design and functionality."

    ReplyDelete
  30. I really amazed to read this blog post. It is so unique and informative. varsity jackets

    ReplyDelete
  31. The Global Hues creates a global network, connecting ambitious entrepreneurs and fostering opportunities for collaboration and growth.

    theglobalhues

    ReplyDelete
  32. Thank you very much for sharing important information. I am impressed read it. Amazing Tech Bangla

    ReplyDelete
  33. The blog post explores the EPA's dynamics and the unexpected twist involving Administrator Stephen L. Johnson. It questions the agency's independence and White House influence on environmental policies. The article also speculates on Johnson's potential pro-environmental inclinations and the possibility of a tell-all book. Abogado Accidentes de Semi Camiones

    ReplyDelete
  34. Sometimes, applying a few drops of lubricating eye drops can help hydrate the eye and make it easier to detect the presence of a contact lens. Blinking several times after using the drops may help dislodge the lens if it's stuck.
    Close your eyes and gently rub them in circular motions. This can sometimes help move a contact lens that may be stuck or folded in your eye. Be sure to wash your hands thoroughly before touching your eyes.
    if you want more details visit this website, how to tell if contact lens is still in eye.
    how to tell if contact lens is still in eye.

    ReplyDelete
  35. I love attending the events hosted by Al Khail Mall Dubai. Check out this article for more information. al khail mall Dubai<\a>

    ReplyDelete