Monthly vs. annual subscriptions: why the answer isn't either-or
Most online news publishers offer potential subscribers two options: monthly and annual subscriptions. Which one is more beneficial? And should a publisher prioritize one at the expense of the other?
The data on retention, lifetime value and conversions
According to median calculations from the Piano benchmark (based on March 2026 data covering hundreds of websites), the picture is clear: an annual subscriber is more than four times as likely to still be active after four years compared to a monthly subscriber.
Annual subscriptions clearly dominate – their LTV is more than double.
At first glance, the answer to what publishers should focus on seems simple: annual subscriptions. But retention and LTV are only part of the picture.
When we look at how many people purchase a subscription, the picture changes: monthly subscriptions generate significantly more conversions.
*The remaining percentage reflects other subscription terms such as quarterly or biennial.
The reasons are intuitive: a lower one-time payment, a shorter commitment, and the assumption that most readers want to cover an immediate need – to read specific content – without committing for an entire year.
Despite the differences in conversions and retention, the annual vs monthly share of active subscribers, average revenue per subscriber per month, and revenue share across the same 181 sites are surprisingly balanced.
A surprisingly balanced picture — 181 sites
Share of active subscribers
49% Annual 40% MonthlyAvg. revenue per subscriber / month
$6.62 Annual $6.57 MonthlyRevenue share
49% Annual 42% MonthlyAnnual plans have a higher share of active subscribers. This is because monthly subscribers churn much faster. Annual subscriptions also have a larger share of total subscription revenue.
Despite fewer subscribers converting to annual plans, each one stays longer and contributes more over time. Even when publishers offer a discount on annual plans, the retention advantage still outweighs the reduced price.
Why publishers need both monthly and annual subscriptions
Even though annual subscriptions show better retention, higher lifetime value, and slightly better revenue share, it’d be a mistake to dismiss or ignore monthly subscriptions.
The reason is simple: not all readers are the same. Some are happy to commit to a full year, others want the flexibility to cancel anytime.
Those committing to a year typically deliver higher value per subscriber. And monthly subscribers – while their individual value is lower – compensate for the difference with their volume. Ignoring a group of readers willing to pay less would only mean giving up nearly half of your subscription income.
Beyond monthly and annual plans
Although based on smaller samples, quarterly and 2-year (biennial) subscriptions stand out.
Biennial subscribers show the highest retention of all term types – 27.3% after 4 years (compared to 18.0% for annual and 4.4% for monthly subscriptions).
They also have the highest average revenue per subscriber – $9.69 (vs $6.62 annual and $6.57 monthly). Second highest is quarterly subscriptions – with $7.97 average revenue per subscriber per month. Notably, their retention rate is lower than biennial and annual, but higher than monthly – 9.2%.
If your platform supports it, testing a quarterly or 2-year option is worth considering – the audience is smaller, but the retention and revenue data suggest they're among your high-value subscribers. Not testing these options could mean leaving revenue on the table.
3 things publishers can do to maximize subscription revenue
Conduct a pricing survey
A pricing survey reveals how price-sensitive your readers are – across your full audience and within specific segments. Setting prices too low or too high can hurt revenue. Price too low and many subscribers are paying less than they're willing to – revenue is left on the table. Price too high and demand drops sharply. In fact, we've seen multiple instances of clients lowering price and growing both revenue and their subscriber base, resulting in a stronger subscription business. A pricing survey is also the only way to understand your audience's price sensitivity before you go to market – once a price is established, changing it is harder.
Run A/B tests
Benchmarks tell you what works across hundreds of publishers. A/B tests tell you what works for you. Two areas worth testing in particular:
Offer page composition: Which subscription options (monthly, annual, or other) should appear together, in what order, and with what emphasis? For example, adding a third, higher-priced option alongside monthly and annual has driven a 53% conversion increase and 106% revenue increase in Piano benchmark data. Expressing discounts in dollars rather than percentages also drives higher conversion rates.
Pricing: What price maximizes total revenue, not just the number of conversions? A lower annual price, tested properly, can grow both subscribers and revenue at the same time. For example, working with Piano, TechCrunch dropped their annual price from $150 to $99. As a result, annual conversion rate doubled, annual revenue grew 28%, and the share of annual vs monthly conversions jumped 92%.
Related read: Direct vs. Indirect Checkout: What Our A/B Tests Reveal About Conversions
Segment and personalize
Once you know how your readers behave and what they're willing to pay, you can tailor offers accordingly. A reader who visits regularly is a strong candidate for an annual plan, which pairs well with an attractive discount compared to a monthly price. A first-time visitor arriving from a single article is better served by a monthly option or one-time access.
The goal isn't one offer for everyone. It's the right offer for each reader, based on where they are in their relationship with your publication.
What the data tells us
The data makes the case for both: annual subscribers stay longer and generate more lifetime value; monthly subscribers convert at higher rates and account for 42% of subscription revenue. The publishers who do well don't pick one – they use pricing surveys, A/B tests, and behavioral signals to put the right offer in front of the right reader. That's the difference between a subscription strategy and a subscription page – and it's where the revenue gap between publishers widens.
