Click here to download this session’s cheat sheet with key information
In the ever-evolving media landscape, news publishers are increasingly focused on revenue sustainability. Mather’s recent industry benchmarks (stay tuned to download our report) show digital subscriptions surpassing print subscriptions, signaling a crucial juncture for publishers to reevaluate their product and pricing strategies. At present, digital revenue growth is not keeping pace with ongoing print declines, suggesting that publishers should focus on extending the lifespan of print while aggressively pursuing digital revenue.
In our recent webinar, “Maturing Your Pricing Strategy for Sustainable Growth,” we shared key insights on navigating this complex landscape. Pricing emerged as a pivotal lever for revenue and profitability growth, alongside factors like churn management, product bundling, and more. Many publishers have evolved their print pricing approach and are leveraging targeted, data-driven tactics to sustain this critical revenue stream. However, Mather industry benchmarks suggest that digital pricing maturity remains low with median monthly print prices surpassing digital by 3.5X. This indicates an opportunity for publishers to further future-proof their business
Targeted, value-based pricing is a well-established approach for growing subscription revenue and can be deployed at various levels of sophistication. This strategy centers pricing decisions around subscriber pricing sensitivity/willingness to pay. Several factors influence price sensitivity, including subscription characteristics (e.g., product, payment method, delivery frequency, etc.), subscriber attributes (e.g., tenure, digital engagement, location, etc.), and macroeconomic conditions (e.g., inflation, gross domestic product, etc.)i. The optimal pricing action is the one that maximizes revenue and minimizes churn, which is why predictive retention modeling is at the heart of Mather’s proprietary targeted renewal pricing solution, “Market Based Pricing (MBP).”
A case study presented during the webinar showcased the efficacy of targeted pricing. By applying Mather’s data-driven, algorithmic approach, a U.S.-based publisher achieved notable results over a three-year period: a 3% growth in topline revenue and an impressive 18% growth in average revenue per user (ARPU), all despite a 12% decline in total subscriber volume, driven by print trends.
Targeted renewal pricing enabled this publisher to extend the lifespan of its print revenue stream while bolstering their digital-first priorities through investments in technology, user experience, and local content.
This publisher’s success did not happen overnight – the journey towards pricing maturity requires time and strategic planning. Leveraging data and analytics, conducting thorough testing, and embracing a “fail fast” mentality are also integral to the process. In Mather’s 20+ years of experience, we have found that the most successful publishers focus on achieving incremental victories over time, while keeping their long-term strategy in sight.
Interested in deploying a more sophisticated pricing strategy? Contact us for a free consultation!
