In a marketplace full of competition, Showtime Networks is leveraging its brand offering consumers top premiums to boost subscription rates.
The latest incentive from the Viacom, Inc. subsidiary is a result of a partnership with Microsoft Corp.’s Xbox video game system. Consumers who sign up during the promotional period (May through July) will receive two free Xbox games or one free Xbox game and an Xbox Live Starter Kit, which includes a 12-month subscription that lets gamers compete with others around the world via a high speed Internet connection.
TV spots, direct mail and Internet materials support.
Showtime has offered incentive-based campaigns (gift cards, gift certificates and free items) with outside companies since 2001. Various partners have become heavily involved in Showtime campaigns, opting to contribute more to the incentive plans, said Rick King, VP-marketing and promotion at Showtime Networks. For example, the network offered a $25 iTunes gift certificate or a $25 gift card for Apple retail stores to new subscribers who used the service for at least three months.
The network has distributed traditional incentives, including T-shirts and backpacks, dating back to 1995.
“All marketers, when they want to spike action in some way or another, love to give consumers a bonus, some sort of bonus reason to ‘why buy now,'” King said. “By giving people a cash bonus offer, you get people to respond, but that can get old pretty quickly. Having partners provide these offers (Xbox), it gives variety.”
Showtime chooses its partners based on which brands best fit with the network, King said. The network reviews a wide range of partners and categories and determines which are most relevant to potential subscribers, he said. In the case of the Xbox promotion, research shows households with premium digital service are 75% more likely to buy video games than the average household, King added.
“We’re really telling consumers to ‘get the most out of your home entertainment experience,'” he said.
Showtime Networks plans to offer another subscription-based incentive in the fourth quarter.
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