Crunchyroll · B2C · anime streaming service
Raise the price $1-2 for existing subscribers too, not just new ones
Little churn from existing subscribers; new signups dip somewhat
Workedpricing
What they did
Apply the increase to existing subscribers, since new-subscriber-only increases leave most of the gain on the table (host caveat: grandfather early supporters when the base is small). Keep increases marginal, e.g. $1-2 like Spotify and Netflix, never doubling. Model impact separately for existing subscribers and the future flow of new ones; track year-over-year growth in paid subscribers afterward. Expect a step down in acquisition (e.g. 100K/month to 80-90K after +10%) but little extra churn if executed well.
What happened
Across streaming price increases, executed well, they caused little churn among existing subscribers and some pressure on new subscriber acquisition.
“What we typically see when we've done price increases in the past is that they usually impact subscriber acquisition way more than subscriber retention.”
“A lot of people, when they do a price increase, they only do it for new subscribers in the future, and that's a fine approach, but just know that you're leaving the vast majority of the impact from a price increase on the table.”
“One specific metric to think about is your year-over-year growth in paid subscribers. That's the one that you kind of want to pay attention to after you do these price increases”
Related topics
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- Crunchyroll: Sell merch, events and games to your most loyal subscribersLet it compete on fan relationship instead of the best video player
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- Crunchyroll: Compare people who cancel in the first month with those who stay
- Crunchyroll: Survey what regular subscribers and your biggest fans would each paySomewhat helpful; people say different things than they do
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- Substack: Offer a top tier where fans choose their own priceMany fans pay well above the regular price