UK Audiences May Have Upper Limit on Subscription Pricing

A new report from Simon-Kucher & Partners has some interesting pricing insights for US and UK publishers. While the report’s main recommendations are fairly

A new report from Simon-Kucher & Partners has some interesting pricing insights for US and UK publishers.While the report’s main recommendations are fairly basic (do research, A/B test — stuff we’ve been covering for years on Subscription Site Insider), there was one take-away fact that I found interesting — UK readers felt a subscription became too expensive once in surpassed the £20/month mark.This was after the researchers had “been forced to think about the cost of creating content” and the problem of sustaining operations through an ad-supported model.Current currency conversion rates put £20 around $30, which makes me conclude that the survey was asking readers about B2C content, like general news and entertainment.But the study also notes that The New York Times has a tiered model based on platform access, charging $15 for online + mobile app access, $20 for online + tablet access, and $35 for all three.Therefore, one can assume that the £20/$30 limit is for entry-level subscriptions for B2C news and entertainment sites — in the UK. (While the study used the NYT to illustrate pricing tiers, it appears like the respondents were mainly from the UK.)There’s been little discussion in the industry about the differences in pricing in the US and UK, although most online publications easily gain subscribers in both markets. Fortunately, I’ll be speaking in London later this month and plan on returning with plenty of helpful insights, such as the differences in payment processing and taxation (I’ve heard UK audience prefer direct debit and those pesky Europeans want a VAT tax on digital information products).If you’re a UK-based reader of Subscription Site Central, I encourage you to attend The Specialist Media Show so that we can meet in person. Or send me your restaurant recs via Twitter.

Up Next

Register Now For Email Subscription News Updates!

Search this site

You May Be Interested in: