During the last 10 years leading Swedish media company MittMedia have lost 20 per cent of their newspaper subscriptions. With a new digital revenue strategy MittMedia is reversing the negative trend and creating a more profitable and sustainable business platform. In 2020 the digital media offering will be MittMedia’s core business. To get there, MittMedia have developed new subscription package offerings comprising both personally adapted and standardised broad services.
The broad media subscription packages Surf, Digital, Helg and Komplett are priced from 99 SEK to 269 SEK per month. Komplett is the all-inclusive media package, which also includes the paper issue, and the Surf offering is the cheapest subcription allowing subcribers full online access to the paper. When MittMedia was about to set the prices for the new offerings they faced an unusual challenge.
– Since we were going to introduce a set of completely new services it was difficult to find similar offerings to compare them to and to use as price indicators. Which other services and content providers should we use as benchmarks? At that time very few, if any, media companies had launched similar media service subscriptions and maybe our customers would compare our prices to the monhtly fees charged by net services such as Spotify and Netflix, argues Petra Bjernulf, Private Market Director at MittMedia
With PriceGain’s help, MittMedia performed a market and price sensitivity analysis in order to indentify the customers’ willingness-to-pay for each media subscription package. The analysis led to the conclusion that the total amount of subscribers would grow, but that the downturn of newspaper subscriptions would speed up, at the launch of the new media packages.
– We need to go ahead with the new digital revenue strategy anyway. It is an inevitable cost that we will lose newspaper subscribers on the path to a more profitable business platform. We even need to accelerate the digital transformation, Petra Bjernulf points out.