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Won't this cannibalize my subscriber base?

It’s all in the design:

  • First, StreemPay is designed to be low risk to roll out.

  • Limit which readers are offered StreemPay by targeting particular audiences with unique URL extensions that trigger the StreemPay payment option.

  • This allows you to start small and over time, as you collect data, expand the cohorts of readers receiving the StreemPay option.

  • Eventually, you can open up StreemPay to everyone once you have the data to show that adopting StreemPay outweighs any remaining cannibalization risk.

  • Second, StreemPay allows you to set a payment cap.

  • By setting the payment cap above your subscription rate and by pricing your articles appropriately, you encourage existing subscribers to keep their subscriptions.

  • This has the added benefit of building a pipeline of casual readers who become highly qualified leads for conversion.

A note on the quality of the subscriber base:

  • When looking at retention risks, it is important to look at the quality of the subscriber base.

  • High-quality subscribers are less likely to churn because they feel they get value for money.

  • Low-quality subscribers (sleepers, infrequent readers) are more likely to churn for the opposite reason, they feel like they don’t get value for money.

  • One advantage of StreemPay is that you can catch churned readers and give them an alternative way to continue paying for and enjoying your content.

  • Another advantage is that StreemPay can help replace high-risk subs with high-quality subs by targeting high-spending casual readers to convert to a subscription.

  • This can significantly reduce the latent strategic risk in your subscriber base that low-quality readers could start to churn more quickly and reduce revenue.