I don't have any insider information on player population and subscription statistics, and I'm not going to gauge from the replies from this thread since things like this tend to be a complaint magnet rather than a genuine random sample, but basically, if this year's premier subscriptions can't match approximately 75% of last year's, that's a decrease in total revenue (Source: 1st year economics), on top of damaged customer relationships.
That can also affect future volumes of microtransactions. For example, earlier this year, I'd happily whip out my wallet because I can get the cosmetics I want and to support all these cool people at Jagex. Somehow, I don't exactly see myself repeating this in 2016.
Also, quick lessons on the art of bundling in managerial economics: This would be pure bundling because you can't buy the Premier benefits separately. Increases profit when players have varied, uncorrelated preferences for the pkg benefits. You would increase its demand by selling the bundle cheaper than if you would sell them separately.
When you include more benefits in a bundle, the demand curve becomes distorted. Works well when benefits have low/zero marginal cost, yes, but the middle area of the demand curve where you'd find the revenue-maximizing point tends to become more elastic, thus making it less likely to increase total revenue with the aforementioned 75% or 25% thing.
If it ain't broke, don't fix it.
and we're risking breaking it. Risk is quite high too.
Suggestions:
- Keep Gold pkg the way it was with this year's parallel.
- More benefits? Add a platinum category.
- Current Golds are Platinums with no extra fee with option to refund
- Hire a JMod with a background in economics
04-Dec-2015 05:48:05
