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Radio Wins Where MoviePass Failed: The Power of Heavy Users

Over the weekend I watched the Max documentary MoviePass, MovieCrash. It’s a fascinating look at a company that captured America’s attention back in 2017 with its unprecedented $10-per-month unlimited movie ticket offer.

The company struggled to sustain its business model due to the disproportionate usage by heavy users, which ultimately led to the company’s collapse.

While the concept of heavy users played a pivotal role in the demise of MoviePass, that same concept is a tremendous advantage for radio.

The Radio Industry’s Advantage: Unlike MoviePass and other industries that can buckle under consumer demand, radio isn’t in the same boat. Heavy listeners, who spend more time with radio, are not just valuable—they’re essential. Our challenge isn’t managing user costs but rather maximizing the value each heavy listener brings and getting more of them.

Why Heavy Users Matter for Radio:

  1. Consistency: Heavy users provide a stable and consistent audience, essential for maintaining and growing ratings.
  2. Engagement: These listeners are highly engaged, more likely to interact with radio contests, promotions, and on-air personalities.
  3. Advocacy: Heavy users often become brand advocates, promoting their favorite stations within their networks, further amplifying reach.

The story of MoviePass serves as a powerful reminder of the importance of understanding and strategically managing heavy users. For us, this demographic is not a liability but a cornerstone of success.

Link to Original Source