This week, Netflix is in the headlines. The streaming giant is offering a new low-cost, ad-supported streaming model. However, Variety reports that 5-10% of Netflix’s catalog will be absent from the value plan. Now, customers must ask themselves if saving $3 per month on Netflix is truly worth not only being served ads but having fewer viewing options as well.
Netflix is facing an age-old business challenge: Keeping prices low while keeping value high. Time will tell how the new streaming tier will perform, but today I want to encourage you to brainstorm ways your business can offer discounts without over-diminishing value.
What are your thoughts? I invite you to schedule time with me if you’d like to have a risk-free strategy call with a true eCommerce magician.
Every week, we highlight the biggest news happening in the subscription economy. Our hope is to inspire you to glean from what other successful recurring revenue merchants are doing, and we scour the web so you can stay current without getting buried in content. We also accept submissions, so please share your latest business news with email@example.com for consideration.
Let’s get into it, but first:
Deals of The Week
Elon Musk Announces $8 Monthly Twitter Subscription
Elon Musk announced on Tuesday that Twitter will launch an $8 monthly subscription, buying users blue tick certification and exposure to less advertising.
Read the full story on EuroNews.com.
Insider Overhauls Subscription Strategy in Face of Recession Fears
Insider is planning to restructure its newsroom to bring more content in front of its paywall.
Read the full story on Axios.com.
Peloton Stock Plunges as Sales, Subscriptions Disappoint
Peloton Interactive could not stem its stock’s steep slide on Thursday in the third quarter, with an earnings disappointment accelerating declines.
Read the full story on SeekingAlpha.com.
GitHub Hits $1B in Annual Recurring Revenue
As part of its post-earnings conference call, Microsoft revealed that GitHub has surpassed $1 billion in annual recurring revenue for the first time.
Read the full story on Thurrot.com.
Meta Announces New Creator Monetization Tools, Including Subscriptions on IG and New NFT Options
Instagram’s making fan subscriptions available to all eligible creators in the US, which will enable a lot more people to monetize their Instagram audience via direct, ongoing support from their communities.
Read the full story on SocialMediaToday.com.