Changes are in the air....
Tuesday, November 3, 2009 at 10:50AM I've just re-read this blog post after completing it and I hate to say it, but it sounds more like a sales letter as you get towards the end. I never intended it to be that way so apologies. Feel free to ignore this one and wait for tomorrows which will be back on track! - Don
I've just posted two audio clips to the ScreenCastsOnline iTunes feeds, one for members and one for viewers of the free feed. The clips describe some changes to the structure of ScreenCastsOnline moving forward.
If you're not familiar with the setup of ScreenCastsOnline, it's my video podcast and my full time job. I've been running it successfully for the past 4 years and since starting the show, I've created over 220 screencasts on all sorts of subjects, applications and topics. Each show is around 30 minutes long and is a full video tutorial covering a specific application or the occasional "MacMontage" show, where I cover a number of hints and tips in a single show. When I first started, the show was a hobby and all the content was free. When I decided to go full time, I launched a membership scheme and started to produce some of the shows for just the members.
Initially, the membership was very low cost, so I did three free shows and one members show for a long time. I did get the occasional sponsored show or an affiliate deal to help support the show too.
Then about two years ago, I started to feel uncomfortable about the members, in effect, subsidising the free shows. Just one members show per month didn't seem right? So to reset parity, and make it fairer, I decided to move the model to two free shows and two members show each month. The members shows were in a higher resolution and included navigation chapters, but subscribers to the free shows still got two full free shows each month.
This model has been running successfully for over two years, and although I get very few complaints from the members, it still didn't feel quite right, basically giving half my content away for free and expecting others to pay for the other half.
So after much deliberation, I've decided to take the show to it's next stage of evolution, and make it three members shows every month with one full free show, starting as of 1st January. I think this is a much more equitable arrangement that will both attract new members and possibly more importantly, make the renewal decision easier for existing members.
But if I'm making changes, why stop there!
Pricing has always been an issue in trying to find the sweet spot and realistically reflect the true value of the show. During the initial stages of ScreenCastsOnline, it was a leap of faith for many people to pay for something previously available for free. The whole issue of paying for a podcast was a complete anathema for some people (very few hate mails I have to say though). The whole issue of paying for content on the internet seemed quite a stretch in view of the amount of free content available all over the Internet.
My model was to price it low (a low cost six month membership plus access to the archive) and deliver top quality content on a regular basis. The show has been running for over 4 years and in all that time, I think I've only missed a show three times. The production values have increased tremendously as I've developed more experience both technically and in my delivery.
So I've persevered and the audience has grown. I've had many instances where people have emailed me and would have been happy to pay the six months membership for a single show, it had been that valuable to them.
As well as producing the show each week, I've also taken on external screencasting work, turning into a mini production house for others. The extra funds that has generated has gone a long way to supporting the show, but the downside is it detracts from the time available to produce the shows and all the supplementary mechanisms that are needed to support it. I really need to free up some time to concentrate on the ScreenCastsOnline website and make it easier to use and more importantly, easier to find and watch content.
So I thought I'd tweak the pricing model as well!
The current price for a six month membership is $57 - that's not per month, but for six months. In addition, you get immediate access to the archive of over 220 shows - a bargain!
However, I'm not sure that truly reflects the value of the show, especially as that price has remained the same for 14 months or so and since setting that price point, an extra 60 shows have been added to the archive.
So as well as changing the ratio of the shows, I'll be putting up the price of the membership to $87 from the 1st January 2010.
Now I fully realise that this may upset a lot of people who've been following the show for while and just receiving the free show. To offset this, I'm going to make a special offer of a significant discount off the current price of the show for November, to give the opportunity for them to join before the price increase and before the free shows drop to just one per month.
With immediate effect and only up until the end of November, I'm making available a 50% discount for a full six month ScreenCastsOnline membership. No restrictions, not a trial period, but a full membership with the next 6 months worth of shows and immediate access to the ScreenCastsOnline archive. That makes it just $28.50 for a full membership.
Just sign up as usual at http://www.screencastsonline.com/extra and use the Coupon code NOV2009 to get the full discount.
As an aside, I'm not making any changes to the existing members and renewals - they remain exactly the same as they have been for the last three years. Oh, except for a new 24 month renewal rate to save $20.
Now back to editing this weeks show...
Reader Comments (19)
Timing is everything in this life - signed up last week! Having said that, still happy to have paid $57 for what I think is a bargain and would not have hesitated at $87 either. Great shows and worth every penny.
The increased membership equates to around a 52% rise. Our Nu Laber masters tell us the inflation has been in the order of 0.5 to 1% for the last 2 years. That`s quite a rise in membership, but particularly, as far as I can tell, for NO additional benefit.
The quality is not in question. Further, although shows arrive weekly, and on time, it is a fact (sadly and not your fault) that some or more shows will not be of interest to all. For example since I have been a member (July 2009), out of the 15 shows available, 4 were of little or no interest to me. 26%. That`s just the way it is and no fault of your own.
I am self-employed. I have been since I left the Armed Forces. I keep my prices high because I provide a superb service that people are prepared to pay for. I am certain that my prices put off some, but that`s the way it is. Each and every time I have increased my prices (never by 26% I have to say) I also offer a carrot.
It may be that you have calculated, that by increasing costs you may lose members but with greater revenue will not effect your income. On the other hand you may lose a significant amount of members so that gross income is down. Either way YOUR workload is the same! You may benefit with increased income or you may lose. It is indeed a very fine line to tread.
Given the current economic climate both here and in the States, it would seem that an increase of 52% for no additional benefit is a little steep. Time will tell.
As a comparison, Kelby training charge 199 US Dollars for 12 months access. Lets say 100 Dollars for 6 months. 13 Dollars more. BUT, members have access to literally hundreds and hundreds of different tutorials on a variety of subjects from many different tutors. The content is streamed and cannot (easily) be saved but is constantly accessible.
At the end of the day it`s your business and you have to do what is right. You are entitled to want to have more revenue for the same effort. But it would be nice if everyone was a winner!
Good luck anyway.
Hi Nick,
Thanks for taking the time for the detailed comment. I felt it was only fair to respond to your points although I don't feel I have to justify any of the changes.
"The increased membership equates to around a 52% rise. Our Nu Laber masters tell us the inflation has been in the order of 0.5 to 1% for the last 2 years. That`s quite a rise in membership, but particularly, as far as I can tell, for NO additional benefit."
No additional benefits? Bare in mind this change is only for new members. Compared with someone who joined in January 2009, they will be receiving an additional 60 shows - that's 30 hours of content. $1 for an hour of tutorials.
The quality is not in question. Further, although shows arrive weekly, and on time, it is a fact (sadly and not your fault) that some or more shows will not be of interest to all. For example since I have been a member (July 2009), out of the 15 shows available, 4 were of little or no interest to me. 26%. That`s just the way it is and no fault of your own."
Cool! Good quality is a strong point of the show. As you say, the content is going to be more applicable to some than others. The show is fairly unique in that it doesn't focus on a narrow niche topic such as Photography or Pro Apps. It's one of the few sources of training for both Apple consumer level products, and leading third party products.
"I am self-employed. I have been since I left the Armed Forces. I keep my prices high because I provide a superb service that people are prepared to pay for. I am certain that my prices put off some, but that`s the way it is. Each and every time I have increased my prices (never by 26% I have to say) I also offer a carrot."
So you keep your prices high? Your criticism of my price hike does not take into account that perhaps my original price may have been priced too low? Again, this is for new members coming to the site, I'm not expecting them to price compare between the old price and the new. The new price is set to fairly represent the value of the current offering. Existing members do not have any increase for renewals. They keep the same low price as that have for the past three years or so, in fact, I've introduced a new renewal level for 24 months which actually makes renewing cheaper.
"It may be that you have calculated, that by increasing costs you may lose members but with greater revenue will not effect your income. On the other hand you may lose a significant amount of members so that gross income is down. Either way YOUR workload is the same! You may benefit with increased income or you may lose. It is indeed a very fine line to tread."
I've done no calculations and I'm going on what I feel to be right and based on what others have expressed. I shouldn't lose any existing members at all - they are not affected in any way. I may not attract as many new members as before (potentially) but I feel the new price represents a fair price. Don't forget, there is a restructuring going on here as well so that the differential between members and viewers of the free show is significantly greater.
"Given the current economic climate both here and in the States, it would seem that an increase of 52% for no additional benefit is a little steep. Time will tell."
As I've said, there is no change for existing members so there is no impact on current members to spend more. It's actually cheaper for them if they renew for longer.
"As a comparison, Kelby training charge 199 US Dollars for 12 months access. Lets say 100 Dollars for 6 months. 13 Dollars more. BUT, members have access to literally hundreds and hundreds of different tutorials on a variety of subjects from many different tutors. The content is streamed and cannot (easily) be saved but is constantly accessible."
Great comparison. My site also has hundreds of shows, on a variety of subjects but not limited to design and photography. There is a single tutor, me, but many people find that refreshing as they like my style and technique. They know me and how I teach and thats an extra draw to the show. My content can be streamed or downloaded and is available in many different formats. My content also has no DRM so if you download a show, you keep it. Don't forget, the price increase is just for signing up and the first six months. If you decide to renew, the most expensive option is $50 for 12 months - one quarter of the price of Kelby. If you take the cheapest option, it works out to only $199 for five years!!!
"At the end of the day it`s your business and you have to do what is right. You are entitled to want to have more revenue for the same effort. But it would be nice if everyone was a winner!
Good luck anyway."
Thanks Nick!
Now the only reason I've responded in detail to the post was that others might also be under the same misapprehension on some of the points and by responding in detail, I hope I've set the record straight!
PS You never touched on the fact I'm virtually giving away memberships for this month either - 50% discount off the current price - Sheeessh!
Thanks for the support Richard and apologies for the bad timing!
Thanks Don for the work that you do. You are a brave person to strike out on your own. I'm sure you would love for your work to be free, but the wife and kids would have something to say about that for sure. People need to determine what they are willing to pay for high quality tutorials - one person's expensive is another person's cheap.
Best of luck going forward!
"No additional benefits? Bare in mind this change is only for new members. Compared with someone who joined in January 2009, they will be receiving an additional 60 shows - that's 30 hours of content. $1 for an hour of tutorials."
Ok, just noticed, last paragraph , but one, only applies to NEW memberships. That softens the blow then! "An additional 60 shows." So it may pay to join later than sooner?
"Cool! Good quality is a strong point of the show. As you say, the content is going to be more applicable to some than others. The show is fairly unique in that it doesn't focus on a narrow niche topic such as Photography or Pro Apps. It's one of the few sources of training for both Apple consumer level products, and leading third party products."
<Strong>The show is unique, but frankly is a niche subject - The Mac and the Mac Apps. That`s pretty niche!
"So you keep your prices high?" Yep from the off! "Your criticism of my price hike does not take into account that perhaps my original price may have been priced too low?" Irrelevant to the consumer, they don`t like large price hikes, may have been better starting off higher and increasing charges slower. "Again, this is for new members coming to the site, I'm not expecting them to price compare between the old price and the new." Probably not, agreed."The new price is set to fairly represent the value of the current offering. Existing members do not have any increase for renewals. They keep the same low price as that have for the past three years or so, in fact, I've introduced a new renewal level for 24 months which actually makes renewing cheaper." I like the 24 month cheaper (pro rata) offer, good business sense.
"I've done no calculations and I'm going on what I feel to be right and based on what others have expressed. I shouldn't lose any existing members at all - they are not affected in any way. I may not attract as many new members as before (potentially) but I feel the new price represents a fair price. Don't forget, there is a restructuring going on here as well so that the differential between members and viewers of the free show is significantly greater." I agree with lots you are doing, but the differential thing between members and viewers is completely irrelevant, frankly. A bit of a curved ball! It means no better value to the members does it? In terms of attracting new members I think you should offer free shows. BUT, JUST a sampler of say the first few minutes for example.
"As I've said, there is no change for existing members so there is no impact on current members to spend more. It's actually cheaper for them if they renew for longer." But a considerable hike for those sitting on the fence.
"Great comparison. My site also has hundreds of shows, on a variety of subjects but not limited to design and photography." No, limited to the MAC! Come "There is a single tutor, me, but many people find that refreshing as they like my style and technique. They know me and how I teach and thats an extra draw to the show. My content can be streamed or downloaded and is available in many different formats. My content also has no DRM so if you download a show, you keep it." Yes agreed, I actually believe the presentation is superior to KT and can be downloaded and saved. All positives! However, the KT shows are generally twice as long.
Having read your blog quickly I hadn`t noticed that membership was "frozen" for current members. That`s good! Here are some other points I have been thinking about.
1. How about a 1 Month membership for those on the edge?
2. For me, the biggest stumbling block is not knowing what is coming up during my 6 Months, or so, membership. I understand why, but I am purchasing something, just not sure what! From experience I know that I will probably find around 25% of little interest to me. That`s the way it is. I used to buy magazines, but used to find such a high percentage of the content of no interest that I stopped. Now, a way round this. Offer a single show download. That would mean that ANYONE, without committing to 6 months membership can try the show and for some they can just purchase the shows that are relevant to them. The pro-rata cost would be more, naturally. As an aside that would probably attract those that used to watch just the free shows!
I actually stopped purchasing KT. I signed up for the monthly membership to try it. I did not like the short sessions contained within a long show, I found that really tedious. I did like the variety of subjects however, but after a while I was not enjoying the experience at all. To that end, your shows are superior.
Nick
@Nick - Most internet marketers would argue that the more 'niche' something is, the higher prices one should charge! In that respect, Don's new pricing is still incredibly good value. I've paid 97 dollars a month for some membership sites without thinking twice, due to the value they gave me.
They were in different niches, but that's beside the point - their perceived value was higher than that to me, and there is no doubt that the value, both perceived and real, offered by Don is worth way more than what he is going to be charging newcomers after the new year.
Just one of Don's tutorials, on 'Things', has already been invaluable to me, and I'll bet a lot of people will be delighted to pay what Don's asking for what really is invaluable content! So...
@Don - great news, I'm sure the results will speak for themselves! Onwards and upwards!
As Don said in the original post/blog, existing members are not effected. So our renewals will remain very good value. All the more reason not to let membership lapse and miss the chance to renew!
I am fairly technical and have figured out a lot since getting my first Mac in June myself. But learnt a bit from Don on here and have lots more to learn and figure out when I have time.
I can now create a MP4 photo show with music quickly and easily.... helps with an Elgato turbo 264 HD to aid with the encoding.
I'll keep subscribing as your videos are top notch, but I would think that if viewership and subscribers are growing then economies-of-scale might apply and you would lowering the price. :-)
I may well lower the renewal rates at some point in the future. Amending the renewal rates is not a trivial task from a technological and management POV though.
Hi Don
Obviously you need to ensure that you balance the books and keep the company solvent.
I do feel that existing members would have stomached an increase of some sort. I for one would be happy to have a 5 or even 10% increase in my membership fee as it has not increased in 3 years as you say. Maybe a discount for the length of time we have been subscribers, loyalty and all that?
It is always difficult to set a price point and even at $87 for 6 months it is good value for money but not possibly an impulse buy that it used to be. Have you thought about a quarterly charge to reduce the initial hit? I signed up to MacProVideo recently, $25 a month was reasonable for what it provided but I do not intend to keep it more than 3-4 months, by this time I will have the Pro App training I need and it will have served its purpose. For me it was an impulse purchase with an exit plan.
Either way, as always you have my ongoing subscription and admiration for making a living out of a hobby and taking the plunge with faith that it would work. You are a true pioneer of this new media.
John
Just to cheer you up for your choice. I've been a member for a while now and I never regretted paying for the show. 2 or 3 months ago, looking at my bank account I said to myself "the price is very low comparing to what it's worth".
Anyway, your new business model seems fine (and fair for to current members) to me. I'll be happy to renew my membership as usual.
p.s : I'm french so I hope don't pay attention if I made one or two mistakes :)
Hi Don!
I do love the free shows. I'm unemployed, so I'm careful about money these days. I appreciate the 50% off offer, but wonder two things:
1) would you consider extending the offer through the holidays? For some, it might make the difference in subscription - gifts.
2) would you consider offering one or two member shows for free during your promotional offer? Again, maybe this would bring on more subscribers.
Just my thoughts. Thanks!
Don, just signed up today for membership and took advantage of the %50 discount. I really enjoyed the 2 shows on Things and the 1 on Things for the iPhone/iPod Touch. Your presentation is excellent and the production quality superb. Thanks again for offering a discounted price for new members this month. Also, thanks for taking the time to @reply to me on Twitter a couple of times with answers to my questions.
Whatever price you demand, I am paying. I have become utterly dependent upon your (always) high quality product. Very much like my addiction to Apple products, in general.
I agree totally Landya. with the addition that as I feel a bit guilty about my low fee because I've been a subscriber since March '06 ( just bragging about how smart I was to find Don so early) I'm going to track him down at MacWorld 2010 and buy him dinner.
Thanks for all the positive responses!
It's really difficult introducing a significant change like this and keeping everyone happy.
And OzRose, don't you dare feel in the slightest bit guilty! Without you guys supporting me earlier on, I wouldn't have been able to get to where I am now. I should be buying you dinner ;-)
Hi Don,
thanks for the update; like many, I have been keen to know what you've been alluding to over the last couple of weeks.
Where I think there's been (and may well still be) some confusion, and I believe it would do you some good to reiterate the point, really clearly, is that existing members' subscription rates won't change. This is a key point, and one that I think wasn't blogged "loud enough" originally!
As you said at the end of last week's show, new members aren't going to notice much difference, and it's exactly the case. Except we get an extra members-only show. :-)
Giving new members a month to sign up before the price increase is a nice gift, and personifies the gentlemanly conduct and sporting nature which permeates your work. Thanks and good luck in everything you do.
James
Hi Don,
Thanks so much for the 50% off discount. That provided a great opportunity to subscribe. I had wanted to previously, but needed to put it off for budgetary issues. I've really enjoyed the recent sponsored shows on LaunchBar and Things, so it was a great time to subscribe.
Good for you for setting a fair price for the content you work so hard to create. Given the uniqueness of the format - a downloadable HD podcast, with other versions including iPhone to boot - I think it's only right. I am a Lynda.com subscriber, and they have a wide variety of apps covered. However, I really don't like their format. I don't enjoy having to click on one short video after another, not having full-screen view, and not being able to view the content offline.
The deep archive that you've created is still useful and valuable. Since becoming a member, I've gone back and looked at older shows such as the one on TextExpander. Even though the software has been updated, the show is still relevant after over a year's time. This is a huge membership benefit.
Keep up the good work, and I'm sure subscribers will follow. The promotion was a good move, as it will spread buzz about the Podcast and rally new people next year.