,
3 tweets,
1 min read
Read on Twitter
1/ "Netflix said Wednesday it lost 126,000 domestic subscribers in the second quarter."
A business like NFLX always churns some subscribers each month and must run faster to grow subscribers on a net basis. Every subscription business has this challenge. cnbc.com/2019/07/18/one…
A business like NFLX always churns some subscribers each month and must run faster to grow subscribers on a net basis. Every subscription business has this challenge. cnbc.com/2019/07/18/one…
2/ Gross customer additions will be > net subscribers due to customer churn. The business must decide how much to invest in customer acquisition. That amount rises the longer the customer is required to commit. Month to month cancellation = lower CAC but higher possible churn.
3/ For a subscription business to be successful, an investment must be made to get a consumer to surrender the optionality associated with buying a product “just in time.” A consumer with less cash reserves will value optionality more, so long term commitments are hard to obtain.
