Media Briefing: The case for and against monthly and annual subscriptions in the battle for retention
This week’s Media Briefing looks at the pros and cons of publishers using monthly vs. annual subscriptions to improve retention rates.
- Monthly vs. annual
- Substacks, podcasts and personal projects
- BDG and Dotdash Meredith announce lay offs, Bloomberg gets deeper into documentaries and more
Monthly vs. annual
Publishers’ ability to retain paying subscribers is becoming a bit more of a challenge as churn rates gradually increase. But not all cohorts of readers are at the same level of risk for letting their subscriptions lapse.
While the average churn rate for publishers increased from 3-4% in 2021 to 4-5% in 2022, the retention rates are typically between 25-30% better for annual plans than monthly plans, according to Justin Eisenband, managing director of the Telecom, Media & Technology industry group at FTI Consulting,