★★★★★ 0/5

Stan subscribers at 300,000

Stan cites a 70 per cent conversion rate from free trials to subscribers.

4
Leave a comment

2015-07-01_0004

Nine / Fairfax-owned streaming service Stan says it has 300,000 paid subscribers, and 800,000 who have trialled the platform.

Mike Sneesby​, CEO of Stan told a lunch in Sydney the platform had achieved a 70 per cent conversion rate from free trials to subscribers who pay $9.99 a month.

“We have had over 300,000 sign ups and 800,000 people have used the platform since it was launched on Australia Day,” he said adding: “We are performing consistent with, or better than our business plan”.

This week Netflix numbers were estimated as 737,000 subscribers. A separate reported estimated 900,000.

Source: Fairfax

4 Responses

  1. Thanks for the reminder David. I forgot to discontinue my STAN subscription – I will do so now. They launched too early IMHO – there is hardly any content of interest!

    1. Yes the average rate is 37.5%.

      There will be people who signed up for the free trial this month who will stay subscribed, that could explain some of the difference, but it would be 371k which seems unlikely. More likely is that a lot of people signed up for the free trial, 30% quit before being billed for the second month, some people forgot but quit before the 3rd month, and some people are doing the free trial now.

      The important figure is what number do they need to stabilise at to be profitable, and if they are going to get there do they have enough cash to burn through to achieve it? Optus and Austar Pay TV didn’t ever become profitable forced to sell out to Foxtel handing them a monopoly now worth $1b p.a. in revenue.

    2. Yeah, I understood that what they meant was that 70% of people who have tried the service have ended up paying altho’ it might only be for 1 month and then they stop. As Pertinax suggests, I have no doubt that there will have been quite a few people who ended up paying because they forgot or didn’t get around to unsubscribing.

      As with all stats in publicity releases, you have to know what is really being measured and what has been left unsaid. The relevant missing stat is churn rate which is currently about 32% (260K). That will prob settle down but clearly not something that they wish to shout about.

      A 70% conversion rate sounds much more attractive than “one third of our subscribers are leaving each month”.

Leave a Reply