Angie's List (ANGI) CEO William Oesterle tells the WSJ his company is running "a reduced price-test" for subscriptions in markets including NYC, Chicago, and San Francisco, and is trying to gauge "the impact on member acquisition and retention." Those eligible for the cuts are paying just $10 for an annual subscription, rather than the normal $40.
With Angie's having generated 73% of its Q2 revenue from service provider ads and transactions rather than member subscriptions, the company appears to be weighing the pros and cons of sacrificing subscription revenue in exchange for providing a larger audience.
Angie's had 2.16M paid members at the end of Q2 (+51% Y/Y), and an average renewal rate of 78%.
Shares rose 3.4% in regular trading, thanks to bullish sell-side commentary.