Can players navigate the tricky road to monetization?
Consumers of free trials of online supplementary education platforms still need to be convinced of the value proposition of paid subscription: As of now, most of the subscribers going for Free Trials are primarily interested in getting access to material which is just an ‘add on’ to the material available on 100% free platforms (e.g. Youtube, Khan Academy). As a result, the benefit sought from Paid Subscription is not perceived to justify the cost.
However, consumers who go on to use the paid subscription report high satisfaction levels: RedSeer research shows that more than half of paid subscribers’ report positives outcomes after using paid modules and intend to renew their subscriptions with online supplementary education players.
Industry needs to make the case of paid subscriptions stronger for consumers: Access to a wider set of contents in free material and better demos of the paid offerings is crucial to drive faster adoption of paid subscriptions amongst free users.