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Transformation to a Subscriber-Based Revenue Model
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May 24, 2024
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FTI Consulting was instrumental in helping a market-leading media post-product technology company, renowned for developing the world’s most widely used video and audio editing platforms, transitioning its revenue model from a one-time license to a user-based subscription model, thereby achieving significantly higher valuations as a public company.
Our Impact
- FTI Consulting's work led to Wall Street analysts rewarding the client's newly implemented subscription model with higher valuations.
- FTI Consulting performed expert financial engineering to minimize negative effect on cash flows, a common occurrence when a company shifts to a subscription model.
- The client experienced an overall increase in customer satisfaction and a decrease in churn rate as a result of FTI Consulting’s efforts.
Our Role
- FTI Consulting designed and oversaw the client's shift to a subscription model and developed the underlying technology transformation plan to modernize systems in alignment with the new model.
- Our experts collaborated with the client to strengthen its customer portals and help desk, offering a more proactive customer service experience and enabling CIOs to manage users’ consumption independently.
- FTI Consulting worked with the client to redesign sales compensation models so that sales personnel and partners were rewarded equally over time for subscription models, as well as legacy one-time licensing models.
- Our team worked with the client to implement a “value-added” pricing methodology, which is necessary for pricing competitively.
Related Information
Published
May 24, 2024