Total members: 2.3 million
Retention rate: 80-85%
User acquisition cost: $130-$157
Monthly revenue per member: $8.40-$9.00
Also, it sounds like they will be banking hard on the AOL subscription model (i.e. hope that subscriptions keep auto renewing):
When a member’s subscription automatically renews in each successive period, the relative value of that member increases because we do not incur significant incremental acquisition costs. We also benefit from decreasing fulfillment and member support costs related to that member, as well as economies of scale in our capital and operating and other support expenditures.
Link to the S1 here.
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