'Spotify Chose to Create Chaos': Gimlet and Parcast Unions Decry Podcast Cancellationsįor years, high-fidelity audio was presumed to be music’s version of super-sized food portions: an up-sell product that carried a higher price without a commensurate increase in costs to the platform. The family plan may help retention, which can improve subscribers’ lifetime value – that, not average revenue per user, is the key metric in the subscription business – but it does nothing to boost margins. But unlike up-selling in the fast-food business, super-sizing a music subscription service doesn’t pay off in the short term. Those services have the equivalent of a super-sized option: the family plan, which generally costs 50% more than an individual subscription and includes up to six subscribers on a single plan. Super Size Me comes to mind when looking at music subscription services and their quest to improve their margins. For restaurants, the tactic padded margins because the difference in price dwarfed the cost of goods. To the customer, up-selling looked like a good deal: the additional soda or food cost only a few cents more. The 2004 documentary Super Size Me took a humorous look at the health consequences of fast-food restaurants’ practice of up-selling customers to higher-priced, larger-portioned items – a super-sized cup of Coca-Cola rather than a large, for example. An abbreviated version of the newsletter is published online. The Ledger is a weekly newsletter about the economics of the music business sent to Billboard Pro subscribers.
0 kommentar(er)
