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Streamly is piloting an expansion of its ad-supported tier in mature markets like North America and Western Europe. The CEO wants to understand whether the move is accretive to overall revenue or if it’s simply shifting users between tiers.
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Before = (20 × (5 + 2)) + (60 × 10) + (40 × 14) = 140 + 600 + 560 = 1.3B
After = (40 × (5 + 2)) + (50 × 10) + (40 × 14) = 280 + 500 + 560 = 1.34B
Total monthly revenue increases by about 3 percent. The growth is modest and driven mainly by the ad-supported tier doubling in size while the Standard tier shrinks. Streamly expanded reach but lowered average revenue per user, showing that the change stabilized user numbers but did not materially improve profitability.
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