In a competitive streaming world where broadcasters constantly battle to acquire paying subscribers and defeat churn, Newsmax stands out with an inspiring success story. Transitioning to paid subscriptions with Newsmax+, they exceeded 150,000 paying subscribers within the first month, retaining over 85% of these subscribers. Their performance is truly noteworthy.
What’s operating behind the scenes of these fantastic numbers? We sat down with Newsmax’s Chief Information Officer to find out. Watch the interview or read the highlights below.
What is Newsmax?
Founded in 1998, Newsmax is a multimedia and broadcasting company offering TV and OTT streaming channels that share independent news on the American political scene delivered with a conservative perspective. By combining cable and OTT, the company reaches a combined viewership of over 40 million users. A recent Reuters study called Newsmax one of the “top news brands” in the U.S.
Newsmax TV is their live cable news network, now ranked the 4th highest-rated by Nielsen and a top 10 cable channel overall. The channel was introduced in 2014 as an OTT-first channel when the streaming landscape was relatively new. Since then, it has expanded across major cable systems carriers and streaming platform carriers. Over 21 million cable viewers and 15 million OTT viewers watch the channel regularly, with over 10 million app downloads so far.
Launching Newsmax+: Choosing the right partner for launching a paid OTT service
As Newsmax’s viewership reached new highs, the company decided to pivot to an affiliate fees model for cable and introduce paid SVOD with Newsmax+ for its OTT offering. Newsmax+ provides access to the Newsmax live channel for viewers who do not have traditional cable subscriptions.
Newsmax’s vision for this paid launch was ambitious and swift, so they sought a partner with a proven track record to expedite the process. The key priorities in a vendor were holistic support across sign-ups and video monetization and accurate handling of complex aspects like international taxation. They found their dependable subscription management partner in Cleeng.
“When we talked with Cleeng and told them we had a very aggressive timeline, they were ready to put all the resources into it and make it happen. This was really important for us. So I think they did a tremendous job getting this out in such a short period of time.”
Lokesh Tiwari,
Chief Information Officer, Newsmax
Meeting massive success with the launch of Newsmax+
Newsmax already harbored a loyal following, with viewers who highly valued the content and the services it provided. Their app was already well established, and Newsmax+ allowed viewers to continue watching the content they enjoyed with the following additional benefits:
- Content quality and variety: Access to excellent content, now enhanced by an additional library of popular content like on-demand shows, special coverages, and documentaries. This helped convert the loyal viewers who were already watching the TV channel via OTT platforms.
- Strategic pricing and trials: Their price point to attract viewers was just right, and they offered straightforward subscription plans—yearly or monthly. In addition, they extended a 15-day free trial, allowing users to test out the service before committing to payment.
- Targeted technical support: Given the demographic composition of their target group, Newsmax could tell that technology could be a challenge for them. For instance, they addressed hiccups around technically navigating around purchasing, using the service, and so on.
“Cleeng worked with us to put together a very good help center that guides on how to get the service, and how to subscribe. We’ve expanded our customer service and added more resources focusing only on the Newsmax+ side,” explained Lokesh.
Ensuring continued SVOD success with over 85% retention
While Newsmax quickly converted paid subscribers during the launch, its success has persisted, with an impressive 85% retention rate. Notably, 52% of subscribers have committed to annual subscriptions instead of opting for month-to-month subscriptions.
What has worked brilliantly for Newsmax in terms of retention is their balance between prioritizing excellent content, proving the value exchange, and providing frictionless customer experiences, all while being proactive with data analytics.
- Creating high value with content
Newsmax knew that content was king and ensured they offered enough alternatives to keep viewers hooked. For instance, since documentaries were popular on their platform, they continued acquiring new content across different genres to keep the library interesting, including political, war, and everyday American life documentaries. They’re also adding scoops on events beyond politics to include topics like health and finance to make their app a one-stop news hub and keep interest alive. Additionally, they have been building a solid digital presence with premium articles sharing insights into various topics.
“The plan would be to merge those services along with the OTT service Newsmax+, so there's a little more value for the user,” explains Lokesh.
- Proving the value exchange to customers
Newsmax delivers its audience the opinion, news, special coverage, documentaries, and events they seek while ensuring viewers understand the value of the service.
With 5 million opt-in email subscribers and 5 million tech and push notification subscribers, they effectively inform their users about the benefits of the service. They employ creative strategies to communicate this without overplaying it. For instance, during breaking news, they send out notifications that entice people to quickly access sought-after answers.
- Ensuring frictionless experiences
Newsmax also realizes that ease of use is very important. Keeping that in mind, they ensure aspects like their checkouts, help center, and account management are intuitive and smooth. Moreover, they also believe one cannot overwhelm users with content. There must be a balance so people don't leave, not knowing what to watch. They make sure to provide that balance.
“Content can only go so far. You still have to make good service performance. The ease of using the app, in general, its performance, how the services are being rendered, how they are being charged, how much transparency we have, and so on are crucial,” explains Lokesh.
- Being proactive with data to reduce churn
“Analytics are great. They tell us how many users are converting when they’re converting, and when the grace period happens. Based on this, we can direct our marketing efforts in that direction.”
Newsmax’s team closely tracks data to guide retention strategies with segment-based marketing. For instance, they share cancellation forms with users with exit intent. If users suggest their content isn’t enough, they recapture interest with marketing messaging around new content that’s coming up. This has helped them ensure churn is in check.
Newsmax's impressive 85% retention rate highlights its strategic use of innovative technology and data analytics. By partnering with Cleeng, they ensured a seamless user experience and high subscriber satisfaction. This blend of technology and strategy has set a new standard in the streaming industry.
Interested to see the technology that’s helping Newsmax control churn?
We'll be demoing at IBC. Stop by our booth for a personalized demo.
