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SUBSCRIPTION
MASTERY
FOR
PRODUCT
MANAGERS
ProductCon SF 2024
Ajay Arora
SVP, Product & Engineering
Disney
Previously:
Currently:
+ Teaching at:
Continuing
Studies
Audience Participation
1. Services you’re subscribed to?
2. Your favorite subscription and why?
Favorite subscriptions?
278 Million
190 countries
Netflix
246 Million
184 countries
Spotify
158 Million
150 countries
Disney+
1 Billion+
175 countries
Apple
Path to 100+
million paid
subscribers
globally has
been paved
200 Million (est)
27 countries
Amazon
Prime
YouTube
Premium
100+ Million
95 countries
Delivering Continuous Value
Aligning Customer & Business Needs
01.
Be at the
Intersection
Subscriptions
are…
Business
Models
Memberships
are…
Relationships
Subscription
“utility”
Membership
“emotion”
Build an “Emotional Utility”
Subscription
“utility”
Membership
“emotion”
Leading in Subscriptions,
Even with a Commodity Offering
● Similar product
offerings
● Low switching costs
● Membership fee to
shop
● Commodity goods in
inconvenient packs
● Limited ecosystem
advantage
● Similar catalogs
02.
Embrace the
Subscription
Trinity
Acquisition
Retention
Monetization
Here’s where teams
typically focus:
Here’s where you
should focus instead:
Acquisition
Retention
Monetization
Acquisition
Retention
Monetization
The Impact of Monthly Churn
895k
569k
314k
86k
488
Monthly Churn
To scale
subscriptions,
patch the holes
in the bucket
before adding
more
subscribers.
Acquiring a
new customer
is anywhere
from five to 25
times more
expensive than
retaining an
existing one.
03.
Exit
Gracefully
Consider the
the
Long-Term
Nature of a
Subscription
Relationship.
Make it easy to cancel, but consider listening to
your subscriber’s needs and offering a solution.
Subscribers
that are
“stuck” in
your
subscription
service will
cost dearly.
PAYMENT
CHARGEBACKS
CUSTOMER SERVICE
CALLS
RELUCTANCE
TO REJOIN
POOR
WORD OF MOUTH
Recap
02. Embrace the Subscription Trinity
01. Be at the intersection utility
emotion
03. Exit Gracefully
THANK YOU.
LET’S KEEP IN TOUCH:
https://www.linkedin.com/in/aarora/

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