Stan, page-5

https://mediaweek.com.au/stans-mike-sneesby-qa-covers-growth-revenueand-reality/

[Excerpt]

With 1.5m subscribers, what is your conversation rate at turning a free trial subscriber into a paying customer?

The model that Stan has is very similar to the Netflix model in that we have a 30-day free trial. Our conversion rate has been quite consistent over the journey and we’re converting around 75% of people. So about three quarters of all subscribers who takes up a free trial become a paying subscriber. And that metric for us, based on international benchmarks that we’ve seen, is a very strong metric. A lot of it has got to do with the fact that we are a local trailblazer. We didn’t have the brand awareness that Netflix had back in 2015 and so the consumer expectations of us were a little bit lower. What you find is people, ever since we launched the service, who have signed up go, ‘Wow, I’m really surprised. I didn’t think it was going to be that good.’

Compared to some of the internationals, we have a better conversion because we tend to beat the expectation of what consumers have in their head.

[What about Hugh Marks’ idea of a potential for 3m subscribers?]

I think that’s right. I also think it’s conservative. He probably would have said the same thing. If you look at the household population in Australia around nine plus million, getting to a 60% plus penetration of that in terms of households, is extremely realistic. If you have a look at where the US is already, some of the numbers in the US are pointing more towards 80% penetration.”