As the INSIDER Guide to New Product Development (NPD), I’m constantly keeping an eye out for bite-size information that will help you develop and scale better subscription products.  Here’s my “Five on Friday” compilation for April 8, featuring the five best trends, tips, quotes or stats from my reading this week.    

1. Netflix Reduced Its U.S. Library by 31% – What Does it Mean? 

Last month, Simon Vella blogged about Netflix drastically reducing its library of movies and television shows. According to Vella, over 2,500 titles were removed, reducing available TV shows by 25% and movies by 33%.  While the reductions have been kept quiet, it begs the question, “if a content subscription reduces its inventory and nobody notices, does it make a difference?”  The answer is – probably, particularly when it comes to these market questions:

• Is the day of massive content sources over?  It could be.  But more likely is a subscription/by the drink hybrid similar to Amazon Prime’s model.  Why lose the dollars a subscriber would spend to rent that indie movie to a competitor? 

• Will licensing ever catch up?  While price complexity, royalty payments and revenue sharing are easier than ever thanks to micropayment technology, consumers are much less patient with visible price complexity or, worse, lack of content because the providers can’t get their licensing act together.  Time will tell whether licensing can be streamlined to the speed of creation, but the market is demanding it.

• Are streaming speeds the new leverage?  In addition to curtailing content, the post also references the use of streaming speeds as a negotiation tool between content and internet service providers. Years ago, iPhone broke one of the few barriers to consumer purchase by adding Verizon to its wireless options.  The power of content products to manipulate streaming speeds will impact all wireless carriers, and so “speed-of-stream” will grow in importance.

2. Do You Have a Promo Code for that Software?

Smaller and startup subscription businesses are always looking for ways to save money.  I found an unexpected one today, when I signed up for Join.Me.  I noticed there was space for a promotional code, so Googled “join me promo code.”  Behold – 30% off my annual subscription!  I also cadged a discount on a recent press release, and some images for a website. The lesson?  Even if you haven’t received an offer from a service provider, you may still find one that saves you big dollars. Check before you check out.

3. Defining a Target Audience is More Challenging than Ever

“How to Define Your Target Audience”

While this marketresearch.com post is light on specifics to improve audience targeting, there are a couple excellent quotes that make it worth a scan.  No time?  Here’s my favorite:

4. Once Bullish on Pinterest, the Ad World Sees it Slipping

According to Digiday, ad evolution is slowing due to slower technology innovation, which is impacting the growth opportunities for second-wave sites such as Pinterest.  With slower growth than expected, what is our takeaway?  Even imagery-heavy or product-focused subscription businesses might want to think carefully before including Pinterest in its digital marketing strategy.

5. Is the Perfect Salesperson an Ambivert? 

Hubspot posted this infographic on the perfect personality for a salesperson and surprise – it’s not an extrovert but an ambivert that closes the most deals.  What’s an ambivert?  Someone who’s as comfortable talking at a party as they are sitting at home reading a book.  Clearly, it’s as valuable for a salesperson to be quiet as it is to talk. Click here to see the complete infographic. 

Have a great weekend, everyone.

Diane

Diane Pierson has deep experience in product management and marketing, having delivered results to companies including Dun & Bradstreet, LexisNexis, American Lawyer Media and Copyright Clearance Center. She has built products & services that have delivered over $100 million in revenue and knows what works, and what doesn’t, when executing product plans and strategies. She is also a contributor to Subscription Insider. (Read Diane’s full Bio)