Lean on monthly plans once people keep renewing month after month

Yoav Sharon… feeling better with annual plans because of the discount and maybe their intent is more clear. Whereas others, they select the monthly plans and they are renewing it from a month to month. Now it's not that straightforward because of course in an annual plan it's better cash-wise, right? You get all the annual price in advance. This is why companies start with it. You have now an entire year to improve your product before the renewal comes.

Yoav SharonThe move to monthly works only when you have good enough retention renewals on your monthly plans. So, when it's justified, when you can really move there, the math does work. However, again here, it's never only math for us. What we care a lot about is to be able to have this fast feedback loop between a winning test and how it gets translated, winning on usage and how it gets translated to its monetary value. So, by having monthly plans, this feedback loop is really fast. Every usage improvement-

Jacob EitingYou get more renewal binary events that are trustworthy. Yeah.

David Barnard… thesis is if you have a high retaining app, a really great app and a loyal user base, the optimal LTV will always come from a monthly." But he was struggling to do that in his app, Rapchat, but that always stuck with me and thinking about the Netflix of the world, like we're saying, you wouldn't pay $300 in one drop for Netflix. And so, how are you thinking about and using the pricing to maximize LTV? And are you seeing good LTV on your monthly?

Yoav SharonYes, yes. We wouldn't have moved if we haven't seen. No, seriously, it's not across all of our apps, only at a certain maturity level where we do see really strong usage for our monthly plans we do this transition and we do have better LTV basically on our monthly plans for Simply Piano. For the other apps, we still split some of them and we do a lot of testing ongoing, but in our more mature apps we feel really comfortable about going with monthly plans.

David BarnardSo, I'm curious on the annual plans, because this is something a lot of people test and I imagine you've done a ton of testing on it. What have you found to be a good ratio or a good discount percentage that does attract the people you want to annual, but then also kind of maintains a high enough monthly price where you do kind of maximize that LTV?