Minal Bopaiah

When Subscription Publications Go Free: A Post-Hoc Analysis of ‘Huffington’ and Time Out London

Some publishers were disheartened this week when The Huffington Post announced that it’s paid iPad “app-azine” Huffington would now be free. This, despite the fact that the app had been downloaded 115,000 times in just five weeks (i.e., five issues). There was no word from HuffPo on how much money they garnered from subscriptions, but there was a free month with the first download, so probably not much at all. The company is saying their decision…

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NY Times Offers 8-Week Digital Subscription for $1 Through Groupon

It looks like The New York Times has shifted from testing the market for digital subscribers to aggressive marketing.The Gray Lady made an appearance yesterday on Groupon, offering an 8-week trial subscription for $1.The newspaper/news site did some things right with this offer. Most notably, even though the sale was for an online subscription, they included a “tangible-ish” product by including their smartphone app. They also smartly excluded their premium crosswords and e-reader editions, making…

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What Size Discounts Work Best to Sell Online Subscriptions?

Let’s say you’ve decided on a discount offer to help convert more of your prospects into paid subscribers. How big a discount should you offer? Or, rather, how little can your discount be and still work?Offline subscription marketers ran extensive tests in the 1990s, and the results were surprising. For the vast majority of prospects, a fairly small discount (as little as $10 off a $300 subscription) moved the needle. In fact $50 off didn’t…

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Can Smartphones Reduce Card-Not-Present Fraud for Online Subscriptions?

Subscription and membership sites are particularly susceptible to online fraud, basically because card-not-present (CNP) transactions make it easy for fraudsters to engage in carding practices. This can be problematic for subscription sites as it increases chargeback rates and may decrease a merchant’s standing with credit card companies.But a new authentication program may help subscription and membership sites provide reduce CNP fraud. SafePay will send customers an authentication PIN to their smartphone device via an app.…

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Use QR Codes with Direct Mail to Increase Online Subscriptions

While most online publications don’t think to employ postal direct mail marketing, it can be a savvy way to acquire new and expired online subscribers.Of course, the obvious problem is how to transition a prospect from his/her mailbox to your site. One of the better solutions is to use QR codes, which can be scanned with a smart phone, in direct mail pieces.However, QR codes need their own tech-savvy solutions. Firstly, you should only use QR…

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Spotify to Earn Nearly $480M from Paying Subscribers

London-based tech and music company Spotify just announced they have 4 million paying subscribers. With a $9.99 monthly subscription fee, that means the company should garner annual revenues around $479.5 million from subscriptions.This is an impressive feat, made possible by the company’s increase in free members from 4 million to 15 million in a 10-month time. While the percentage of paying subscribers has dropped from 50% of free users to 27%, the actual number of…

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AOL Makes More Than $175M from Subscription Revenues by Reducing Churn

AOL is often seen as the old fogey of the online subscription business, but this old fogey still knows how to milk a subscription Model for all its worth.The company had its lowest decline in revenue in 7 years, reporting an estimated $531 million in revenue for the second quarter. But what few people realize is that 33% of those earning are from the company’s subscription services — that means that more than $175 million…

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U.K. Times Has 131,162 Digital Subscribers, Generating More than £13M

Subscriber growth has been impressive this year for The Times. The News International property recently clocked 131,162 digital subscribers, according to The Guardian.The Times has also broken out its digital and online subscriptions (much like the Columbia Journalism Review) and increased its prices. Now subscribers can either pay…

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U.S. Paid Content Sites Likely to See Same Increase in Credit Card Fraud as Europe

In February I wrote about how the new EMV measures implemented by Visa and MasterCard may lead to increased online fraud. Now, data out of Europe is confirming that suspicion. The European Central Bank recently released its first report on credit card fraud, stating that while chip and PIN technology have decreased physical transactional fraud, there has also been a rise in card-not-present (CNP) fraud. In fact, CNP fraud accounts for half of all credit card…

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To Bundle or Not to Bundle: The Hamletian Dilemma for Paid Content Sites

I usually recommend against bundling print and digital subscriptions for most paid content sites, since it can really devalue your online/digital offerings, making them seem like a “bonus” feature instead of an independent service worthy of full-price subscriptions. But in this week’s Case Study on our sister site, Subscription Site Insider, The Successful Investor Network presents a good case for bundling.The Successful Investor Network decided to start publishing its monthly investment newsletters in PDF formats. Since…

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