Zwift Hints at Potential Subscription Price Increase

Maybe they will bake it in once they revamp the subscription model. Some hints in the attached article.

It would be cool to have a yearly subscription and family subscription in addition to monthly. Honestly, the current price is cheap compared to what it provides and other platforms that already charge more while doing less.

Something like $20 per month (for yearly subscription), $25 for monthly and $30-35 for family could work.

There will need to be some careful modelling before a price is set. We know that many folk switch off their current monthly subscription during the Summer months.

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Quote from article: Zwiftā€™s CEO has suggested that the company may need to adjust its pricing in order to continue delivering the level of quality that users have come to expect.

Anyone else find this amusing :rofl:

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Well, it also says that Zwift is still not profitable, which is unfortunate because itā€™s not something that can last in perpetuity, current steady state is not sustainable basically - if they want to get profitable they need to either reduce costs (which will likely result in less quality than we already have come to expect - no matter what that level of quality is :slight_smile: - hence the quote), or increase revenue.

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I noted the distinct lack of quotes in that article.

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That they havenā€™t put in a family plan is no indication that they wonā€™t. Subscription plans are the issue most directly tied to profits. Whether or not various other changes are made (bigger sprint start banners, repeating unlocked bike banner popups, late start misdirections) are only tangentially related to profitsā€“only if those things can be shown to lead to more or fewer subscribers.

But ā€˜how much to charge peopleā€™ is going to be decided by which option brings in the most money. Saying here ā€œIā€™d really like this, my family would like to spend less moneyā€ is not going to move the needle if Zwift thinks that they would lose money doing that. OTOH, if they thought that a family plan would bring in more money, then theyā€™d do it. Bring in more money by causing people who donā€™t pay for multiple people already to spend a little more.

My wife and I are already paying for two accounts. Would we like it if they gave us a lower cost option? Sure. Would Zwift make more money that way, via just my wife and I? No. They would lose money. Because weā€™re both already paying full.

If people want to move the needle, they need to find data that would indicate that Zwift would make more money this way. Find data that shows that there are families out there with for example one user, who would pay more to add multiple users (people who are not currently paid users).

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Yeah, I presume Zwift has already researched this and have better data than us. Iā€™m the type of family unit that would pay more per month if there was a plan that let me add a second account for a small amount of incremental cost - the amount of that incremental cost would be important however. My wife would ride a few times a month, but not enough to justify a full subscription.

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I think a big key could be what people will do when summer rolls around. Just guessing right now, but it might be the case that I keep my sub going during the summer (for riding when I get home late) and my wife doesnā€™tā€¦but would like to ride sometimes, just not enough to justify a full sub. Would we keep paying a reduced amount (down from 2 subs, but more than 1 sub) during the summer months? Quite possibly. A lot of moving pieces.

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The Bloomberg piece, for those who run into the paywall

https://archive.is/QghfS

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Iā€™d probably double those numbers but maybe

Youā€™d go to $40/month for an individual sub?

I was slightly exaggerating and that isnā€™t what iā€™d want to pay but reading the article i think the prices are going to jump by quite a bit.

From the article:
At $15 a month for the past five years, Zwiftā€™s subscription charge is ā€œnot sustainableā€ for much longer, Min said

and it references:

one option being looked at is locking users into annual memberships. (At Peloton, which charges $44 per month for an all-access membership, subscription revenue is now bigger than hardware sales.)

so my guess would be somewhere north of $25 a month.

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I think Peloton is shooting for a customer base largely of people who arenā€™t perfectly happy riding bikes outside. Your point about costs is well taken. But thereā€™s no chance in H-E-double-hockey-sticks that Iā€™m paying almost half again my internet costs for a Zwift sub (talking about that $40+ figure). I have cold weather gear and IRL bikes that love to be ridden IRL, and I think a lot of Zwift users are in a similar place. Weā€™ll see.

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Iā€™d be delighted to be wrong on this but iā€™d be very surprised if iā€™m paying less than Ā£20 a month (iā€™m in the UK) when the price changes

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Reading all this I have to wonder.

What do you get more relative to a year ago. For my personal use nothing really changed that would say the price need to go up.

For instance:
My favorite race is still not category enforced so I donā€™t race anymore.
We have to create meetups to do our morning workouts because clubs donā€™t work.
I have steering that I canā€™t use.
My XP level is not going up.

It does sound like I am complaining but that is just a few things that I would guess would add value.
We all probably want more and different things.
Am I happy to pay what I pay currently for two accounts, yes I think I get what I pay for.

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Strava has also seen quite a large jump in pricing - and some of geographically biased. Might be worth having a look at that to see where Zwift prices might also be heading. Locking in the ā€œwinter onlyā€ Zwifters must be high priority.

I donā€™t have the year ago measure, just since Sept. But I also think Iā€™m paying a good amount for what Iā€™m getting. And I donā€™t have all that many of the common bugs hit me (knock on wood). Iā€™m working hard to keep my Club active and doing things, and thereā€™s some promise there in the last couple of weeks. Big time Club usability would go a long way for me.

Really nothing would go a long enough way to see me being happy with an immediate 66% increase in cost though (US$15 ā†’ US$25). Definitely nothing I can think of would see me paying a 166% increase to US$40. No chance. And Iā€™m a happy/satisfied Zwift user. Imagine the reactions from the people who post complaints with multiple exclamation points.

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Yeah I would not want to pay a huge increase per month but would not mind paying for 12 months without pause given that Iā€™ve been using it all year round for nearly a year. Iā€™m sure Zwift are crunching the numbers on how many users cancel for their outdoor season. I still like the product better than any competitors I have tried, but I would try more competitors if there were a big price increase. Our household has two subscribers so any multi-user discount with annual payment would be interesting to me. If Zwift were open about what theyā€™re doing to improve the relatively poor quality of each release, that would increase my interest in subscribing for longer periods.

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Currently Ā£13 here in the UK. If it rose to, say Ā£15-16, Iā€™d not even blink. Ā£17-19 and Iā€™d be thinking about giving up a few months in the Summer. Ā£20+ and Iā€™d be looking at alternatives.

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That has changed in the past 12 months

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