Subscription companies facing increased competition are trying different tactics to attract and retain subscribers. For example, this week Sony is slashing PlayStation Now subscription prices as new gaming services come online. Also, Netflix is allowing nonsubscribers free access to the pilot episode of Bard of Blood, a Netflix original. In other subscription news, a new report shows that more than half of online shoppers subscribe to a subscription box, Apple News+ is expanding beyond the U.S. and Canada, and eMarketer reveals how some publishers are replacing revenue lost from ad blocking.

Sony Slashes PlayStation Now Gaming Subscription Prices

Apple Arcade and Google Play Pass Are now competing for gaming subscription revenue and Google’s Stadia is coming soon. Sony does not want to be left behind. Following a 19-market expansion, the company by slashing its prices for the cloud-based PlayStation Now. In the U.S., the video game subscription service is dropping from $19.99 a month to $9.99 a month. The quarterly plan drops from $44.99 to $24.99, and the annual plan drops from $99.99 to $59.99. Subscribers in Europe, Japan and the U.K. will see similar price cuts.

PlayStation Now, available on PlayStation 4 consoles and PCs, includes a library of more than 800 video games. Sony is also adding four of the most-played, highly-acclaimed games on PS4 to the mix – Grand Theft Auto V, Uncharted 4: A Thief’s End, infamous Second Son and God of War – for a limited time. These games will only be available until January 3. This is the start of a new content mix for Sony, as it adds popular games for a brief period, along with its library of classic games.

“Following PlayStation Now’s expansion earlier this year, we have coverage for more than 70 percent of our global PS4 user base, making it the ideal time to revamp the service with a more compelling price and stronger content offering,” said Jim Ryan, president and CEO of Sony Interactive Entertainment. “We have accumulated a wealth of knowledge in cloud gaming since PlayStation Now’s launch in 2014. That, coupled with our 25-year legacy in the games business and strong partnerships we’ve forged with publishers, positions us to continue leading and innovating in this field as the gaming industry evolves.”

Non-Netflix Subscribers Can Watch Pilot of Bard of Blood for Free 

As Apple TV+ and Disney+ get ready to launch their own streaming services in November, Netflix is trying a new tactic to attract new viewers. It is allowing nonsubscribers the chance to watch the pilot of a new Netflix Original – Bard of Blood – for free for a limited time, reports BGR. The show stars Emraan Hashmi in the lead role of Kabir Anand, an Indian spy.

“At Netflix, we try different ways to bring people closer to great stories. We believe many people will find the thrilling story of spy Kabir Anand very appealing and are excited to make the first episode of the series available to everyone for a limited time. In the future, we will consider if we will do this for other films and series,” said Netflix in a statement.

BGR also reports that the release of Bard of Blood comes a week after Netflix announced a cheaper, mobile-only plan in India to be rolled out in the third quarter.

“We believe this plan, which will launch in Q3, will be an effective way to introduce a larger number of people in India to Netflix and to further expand our business in a market where Pay TV ARPU is low (below $5),” said Netflix.

As Netflix’s growth slows and it tries to expand more internationally, Netflix may have to try creative mixes of pricing and content to reach new audiences. We expect the streaming giant to have success with this particular test and are eager to see what other shows and pricing options they will test next.

Clutch Survey Says More Than Half of Online Shoppers Subscribe to a Subscription Box

In a Clutch survey of 528 online shoppers, more than half – 54% – say they subscribe to a subscription box service. The seven most popular boxes are:

• Dollar Shave Club, 29% (grooming)
• IPSY, 21% (beauty)
• Blue Apron, 17% (meal kits and recipes)
• BarkBox, 17% (dog treats, toys and other supplies)
• HelloFresh, 16% (meal kits and recipes)
• Birchbox, 14% (beauty)
• Sephora Play, 14% (beauty)

What makes these boxes popular are the benefits that appeal to consumers. The beauty boxes, for example, give subscribers an opportunity to try new beauty products. The meal boxes help subscribers plan meals that align with their health goals and lifestyles. They also allow subscribers to try different recipes and meals they may not create on their own.

And, of course, all of the boxes appeal to subscribers because they are convenient. Subscription box companies curate the selections, often tailored to subscriber preferences, and then deliver them directly to consumers. Many of the company also offer additional discounts, rewards and perks. Read more about the survey results and why so many consumers subscribe to subscription boxes on Clutch.co. 

Apple News Plus Expands to U.K. and Australia

Apple News Plus, the premium version of the Apple News app, has expanded into the United Kingdom and Australia, a significant expansion for the six-month old app. In the U.K., a subscription will cost readers £9.99 a month. In Australia, it is $14.99 a month. In the U.S., it goes for $9.99 a month, and in Canada, it is $12.99 a month.

The Verge reports that the app is identical in the new markets, but it highlights different publications, based on location. For example, The Times, FourFourTwo and Empire are more visible in the U.K. version. In Australia, The Australian, The Daily Telegraph and Australian Geographic are highlighted.

The Apple News Plus app initially launched in March in the U.S. and Canada, offering subscribers access to more than 150 newspapers and magazines. The majority of publications are magazines, including People, Time, Vanity Fair, and Vox. A few notable newspapers – The Wall Street Journal, Los Angeles Times and the Toronto Star – were willing to test the idea at launch. Other papers seem reluctant to sign on.

Digiday says that Apple has not disclosed how many subscribers the app has at this point. Within the first two days, Apple said it had 200,000 subscribers, but we do not know how many of those Apple retained after the free trial period. It is not clear yet whether Apple News Plus is a boon or a bust.

How Publishers Are Replacing Revenue Lost by Ad Blocking

An estimated one in four internet users in the U.S. and Western Europe use ad blockers on at least one of their devices, says eMarketer. Most people who block ads do so to improve the user experience, whether it is to reduce load time, decrease the instances of intrusive ads like autoplay videos and popups or to reduce tracking cookies. While ad blocking may be good for consumers, it is not necessarily good for publishers who must find other ways to replace lost ad revenue.

In a 2019 study by the Reuters Institute for the Study of Journalism at the University of Oxford, the ways publishers make their money are the following:

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As eMarketer points out, this list is not all inclusive. For example, The New York Times – through its subsidiary Wirecutter – receives affiliate revenue when readers click on a link and make a purchase. Another, newer revenue stream is by selling access to a platform. For example, the Washington Post is now making its Arc platform and its new ad network available to other publishers for a fee.

What will work for each publisher varies based on their assets, audiences, strengths and resources, and this will evolve over time. However, it seems that advertising will continue to play an important role in publisher revenue. Publishers can be successful with digital advertising if they follow the recommendations by the Coalition for Better Ads and the better ads standards and by listening to their readers.

Publishers who are successful will also continue to explore new opportunities to attract and retain subscribers and to test and adapt other revenue streams. Read more about how publishers are trying to become not only sustainable but profitable in eMarketer’s “Consumer Attitudes on Marketing 2019” report.