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Exactly. The real rub will be to manage the churn rate. If their LTV on monthlies is less than 12 months, then they lose the price premium on monthlies. At $5/m
by rexreed 14y ago
Exactly. The real rub will be to manage the churn rate. If their LTV on monthlies is less than 12 months, then they lose the price premium on monthlies. At $5/mo, they would need their LTV to be at least 10 months to match the old subscription rate. But I have this feeling that social networks have stickiness, which would probably mean a low churn rate. Maybe.