Report

June 2003

Migrating Users From Free To Paid

Chris Charron 		It's time for content providers to charge for content. Knowing when to put up a subscription wall, creating exclusive service bundles, and offering short-term, opt-out trials are the keys to gaining paid customers.
by Chris Charron with Michael Gazala, Sheila Baxter, Charles Strohm

MARKET OVERVIEW
  • 18% of online users have paid for online content.
  • Exclusive offerings entice users to fork over their cash.
  • Two of three online users say that the content they get for free is good enough.
ANALYSIS
  • It's time to end the free content era on the Internet.
  • Take three steps to create successful paid services.
  • Exclusive products that give users content ownership will sell.
  • Opt-out trials and persistent messages lure paid citizens.
WHAT IT MEANS
  • Content brands will fracture.
  • Uncle Sam protects an inalienable right to (some) content.
 
Figures & Data
  • Figure 1.  One In Five Online Users Pays For Online Content
  • Figure 2.  Exclusive Content Stands The Best Chance Of Enticing Freeloaders
  • Figure 3.  Experienced Broadband Users Pay For Content
  • Figure 4.  When To Put Content Behind A Subscription Wall
  • Figure 5.  Not All Content Forms Are Likely To Elicit Consumer Payment
  • Figure 6.  Marketing Should Move Users Along A Payment Pipeline
   
RELATED MATERIAL 
  • Research Methodology
  • Companies Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • Packers and Cowboys fans: Same passion, different entitlement.
  • The Times sets another trend.
  • Advertisers move deeper into the content business.

 

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