Finding the right price for your subscription network
It's all about frequency
Vimeo OTT has enabled sellers to set up their own subscription service for a few years now. We now have an idea of how sellers price their work and what tends to be the most successful when it comes to enticing customers to subscribe. If you are unsure what to charge for your network, $7.99 - $9.99 is the general sweet spot for most sellers who are releasing new content on a regular basis (at least once a week). If you are not planning on uploading content as frequently, you may want to charge less than that. Customers like feeling that there is more new content than they can watch before the month is up. This is why we also recommend that you don't launch your network until you have a number of videos ready to be released. We recommend at least 10, but the more videos, the better.
Your content genre should factor into your pricing strategy
There are different pricing windows that may be more successful for your network depending on what type of content you are producing.
For entertainment networks that focus on releasing features, series, shorts, etc. you'll probably want to charge a bit less. We've found that our most successful sellers in that category charge between $4.99 - $6.99 a month. Sites like Netflix, Amazon Prime, and Hulu have thousands of videos available each month. Unless you have a similar volume of content it is challenging to convince potential customers to subscribe at the same or a higher cost than those networks charge.
For fitness you can charge a little more. Our top fitness sellers charge between $9.99 - $14.99 a month. These sellers are releasing new videos and routines each month to keep their customers engaged. By charging much less than a typical gym membership and keeping your content fresh and up to date, you can not only attract new subscribers but also prevent your current customers from churning. It's simple: you are providing convenience and affordability.
Instructional content has the widest range of what you can be charging. Anywhere from $7.99 - $19.99 a month has proven to be successful and sometimes you can charge even more than that. There are a few variables to consider here. In addition to how frequently you are adding new videos, you also want to consider how niche your content is. The more niche the community you are trying to attract, the more you may be able to charge. If you have an audience and there isn't a lot of competition out there, people are more willing to pay a bit more. If your content is geared towards prepping your audience to pass a certification exam or learn a new technical skill, you can also charge a bit higher since it will still be significantly less expensive than enrolling in a university course or Bootcamp class. Also, think of who is most likely footing the bill to subscribe to your content. If you are a network that is targeting medical schools and hospitals to purchase accounts for their students/employees, you can charge more than someone producing educational content geared towards parents and teachers, who will most likely be paying out of their own pockets.
In addition to subscribers paying monthly for their membership, we also give you the option to charge an annual fee so your subscribers can choose to pay up front. Most sellers who choose to sell both monthly and annual subscriptions will price their annual subscription slightly lower than the cumulative cost of a full year of monthly. Here, the dollar amount is less important than the percentage discount you are offering. Regardless of your content genre, you are more likely to entice someone to sign up for an annual subscription if you price it at 20% - 25% less than it would cost someone if they were paying month to month . For example, if you were charging $9.99 a month for a subscription you would charge $99 for an annual subscription so your customers have the incentive of saving 20% on a yearly subscription if they pay for it in full.
Can I change my pricing later on?
Of course! You can indeed change your pricing later on if you feel that you are not charging the right amount. Be aware that a subscriber is locked into the rate they signed up with. So, if you are not sure, it is better to start low and raise your price later, than it is to charge more and lower your price in the future. This way your original customers will feel they are getting a deal as early adopters, which can help with reducing your churn.